In this special edition of Market View, we’re going to take you through some of the key highlights for the private credit market in 2023, as well as what to watch out for in 2024. 

But first things first, what exactly is private credit? Well, according to Preqin, private credit refers to the provision of debt finance to companies from funds, rather than banks, bank-led syndicates or public markets. 

This mode of financing has seen continued global momentum of late. For one thing, local bank DBS said private credit soared to US$1.6 trillion globally and US$350 billion in dry powder. 

But what is driving the momentum, and how far have higher interest rates and public bond yields complicated matters?

And with Asia constituting 41% of global GDP and exhibiting robust fundamentals, DBS added that Asia remains a bright spot despite a recent dip in credit and private equity fund raising. 

But why is this the case, and what lies ahead for the private credit landscape for 2024?

On Market View, The Evening Runway’s finance presenter Chua Tian Tian unpacked the projections with Clifford Lee, Global Head of Fixed Income, DBS Bank.