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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailRisk of U.S. debt ceiling to markets is being underplayed, capital advisor saysSunaina Sinha Haldea, global head of private capital advisory at Raymond James, discusses what political wrangling over the U.S. debt ceiling and risk of default could mean for markets.
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Defaults on private loans, which have fallen steadily since the pandemic's height in 2020, are ticking up. Private credit, or private debt, are catch-all terms to describe privately negotiated loans outside the public debt markets. Private credit firms engage in what's known as direct lending, making these private loans to companies who turn to them instead of a traditional bank. Analysts and asset management executives say private debt has held up well in 2022 in the face of brutal stock and bond market volatility. 'Fighting for allocation'A challenge for private debt funds in the past decade has been a dearth of companies they can lend to.
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