Private Equity News | Private Lending Firms Face Stiff Pressure as Banks Re-enter Leverage Loan Market

Jun 2024

Originally posted by Private Equity News on June 3, 2024.

Risks tied to private credit may be tested as investment banks re-enter the leveraged lending market.

“Proactive repricing is an indication they need to keep that money deployed,” Ron Kahn, co-head of Lincoln’s Valuations & Opinions Group, commented.

A potential concern for lenders facing higher risk is that they may encounter lower yields.

“At some point, it is possible that there might be too much money,” Ron said. “But I don’t think that exists yet, and I think private credit has so far been very disciplined.”

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