The private debt market has been a significant growth story for some time. As we now look at a backdrop of rising short-term interest rates, iCapital sees investors looking to private credit as “a significant buffer over publicly traded high-yield or leveraged loans.”Yet, such front-office growth only hints at the implications behind the scenes. As a provider of loan market solutions, we see this trend through an operational lens.
March 18, 2022—William McChesney Martin Jr., former Federal Reserve (Fed) chair from 1951–1970, is credited with the now-famous “punchbowl” analogy, referring to the Fed as “the chaperone who has ordered the punch bowl removed just when the party was really warming up.”1 Today, the Fed finds itself in the position of taking away the punchbowl again, but in the midst of a party that has been raging, rather than just warming up.
March 16—As most of the world shuns Russia and its oil in the wake of the Ukraine invasion, the implications are vast for reduced global supply and skyrocketing gas prices.