Dr. René Fischer’s Post

Private credit is a large and growing element of insurers' investment portfolios. The sector is looking to catch the next wave of growth — in asset-based lending. In part, that is to sustain its extraordinary growth trajectory and to satisfy the sea change in allocations to credit. But firms are also tapping into it because leveraged lending has become more crowded. How large is the addressable market? Our new estimates suggest specialty finance is a $5.5 trillion asset opportunity in the United States alone, where private credit today has less than a 5% share. The need to secure access to these new asset classes is prompting private credit players to change tack, looking to partner up with banks rather than be their adversaries. We explore what Private Credit 2.0 might look like — for banks and investors. Read more here: https://lnkd.in/d_zRDx4B #privatecredit #assetmanagement #strategy #innovation #reinventinginsurance Huw van Steenis Dylan Walsh Julian Gorski https://lnkd.in/dh_h2Nx2

Great insights on the growth of private credit and the history of bank intermediation.

Exploring the evolving landscape of private credit is crucial for today's investors. We believe in the strong potential of private credit, particularly the strength behind direct lending. Platforms like Percent are at the forefront, offering access, diversification, and transparency in this dynamic sector. Read more about the four reasons to consider private credit in this insightful article from J.P. Morgan Private Bank. 1. Direct lending yields still stand out 2. Loan growth appears to be healthy, not bubble-esque 3. Underwriting standards and fundamentals are solid 4. Defaults may rise further but investors may be well compensated for the risk Read more at: https://lnkd.in/gm9mVB-r #PrivateCredit #Finance #Investing #Percent

#PrivateCredit Outlook 🔭 Last year's regional #bankingcrises (eg SVB, Signature Bank) exacerbated the retreat of #regionalbanks from #assetbasedlending. This has helped create opportunities in #privatecredit, where we are seeing small and mid-size companies, unable to secure financing from conventional sources like banks, turning to #alternative capital providers: #alternativeinvestments #economy #investing #finance #wealthmanagement #equities #bonds #inflation #recession #fedpolicy https://lnkd.in/gjGXwAUb

Private credit is looking to catch the next wave of growth — in asset-based lending. In part, that is to sustain the sector’s extraordinary growth and to satisfy the sea change in allocations to credit. But firms are also jumping in because leveraged lending has become more crowded. How large is the addressable market? I invite you to read our latest report. Putting some numbers in context: 🔹 In 2023, these non-bank lenders funded a whopping 86% of leveraged loans, up from 61% in 2019 🔹 In the first quarter, 28 companies arranged bank loans to refinance $11.8 billion of debt that was previously provided by private credit firms 🔹 Our new estimates suggest specialty finance is a $5.5 trillion asset opportunity in the United States alone, where private credit today has less than a 5% share 🔹 To date, at least 14 major banks in North America and Europe have announced partnerships with private credit firms #Oliverwyman #privatecredit Huw van Steenis Dylan Walsh Julian Gorski Laura Watkin Francesca Owen

The private credit market has surged from $250B in 2010 to an astounding $2T (yes, that’s Trillion) today. Discover how this growth is reshaping the financial landscape in our latest article 👉 https://lnkd.in/dPVmTCp5 After the 2008 financial crisis, big banks retreated from riskier lending due to stricter regulations. This gap has been increasingly filled by private credit, driving its popularity and growth. Private credit offers direct lending and one-to-one relationships, differing from traditional loans funded by bank deposits. This structure can provide more personalised and flexible financing solutions. The shift to private credit is partly driven by floating interest rates, which protect lenders during rate hikes. However, this can also strain borrowers, especially during economic downturns. Transparency and governance in private credit are crucial. Sometimes weak underwriting standards and murky transparency can pose risks, highlighting the need for stringent management and clear investment processes. Despite concerns, private credit remains resilient. Regulatory compliance and secure funding models enhance its stability, making it a valuable alternative investment. As private credit continues to grow, it is important to understand its benefits and risks. Our latest article provides an in-depth look at how this market is evolving. Read more here https://lnkd.in/dPVmTCp5

Private credit has been one of the fastest-growing segments of the financial system over the past 15 years. The asset class, as commonly measured, totaled nearly $2 trillion by the end of 2023, roughly ten times larger than it did in 2009, McKinsey writes in its newest report. In general, both consumer and business loans become much more available and under much better conditions (low interest rates, consumer protection, prohibiting usury), thanks to credit bureaus and developed credit scoring systems. Thanks to them the credit contributes to a higher standard of living, modernisation of businesses, and the rise of the countries´ GDP. In CreditInfo we can see it in over 40 countries we service. https://lnkd.in/eeANmRaY

The expanding footprint of private credit—and the associated migration of trillions of dollars of assets from bank to nonbank balance sheets—represents a significant opportunity for industry participants. While we believe that private credit is here to stay, careful monitoring of short-term risks is still necessary, particularly in the event of an economic downturn in which a range of loans may become stressed or distressed. As the market grows, the regulatory paradigm in the industry will also evolve. The insights outlined in this article can help players succeed in this new private credit ecosystem.

Demand for Private Credit—which refers to lending to companies by institutions other than banks—has grown significantly in recent years. Private Credit offers borrowers pricing certainty and speed, which has helped fuel the market’s growth in recent years. The size of the private credit market at the start of 2024 was approximately $1.5 trillion, compared to approximately $1 trillion in 2020, and is estimated to grow to $2.8 trillion by 2028. #opportunity #privatecredit #markets #lending #financing #alternativeinvestments #economy #SP500 #outlook #economy

Exploring the Growth of Private Credit in 2024 Private credit is rapidly becoming a key component of diversified investment portfolios, offering unique opportunities amid tighter bank lending. As banks reduce their lending due to regulatory pressures, private credit markets are expected to grow significantly, providing tailored financing solutions. Discover how private credit is evolving and the potential it holds for 2024 in this insightful article from AllianceBernstein. https://lnkd.in/ev9qJYhp If you're interested in exploring private credit options and how they might fit into your investment strategy, feel free to reach out! #PrivateCredit #Investing #Finance #InvestmentStrategy #PrivateEquity