Global investors are looking more at European private credit as US returns get squeezed, according to London-based hedge fund Arini. “They want to focus on a place where they think there’s rule of law, where they think there’s opportunity set — and that’s really been Europe,” Mathew Cestar, the firm’s president, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Stephane Kovatchev in the latest Credit Edge podcast. Europe pays about 50 basis points more on private loans than the US to compensate for its relative complexity, says Cestar, who leads the Arini’s direct lending business. The firm generates additional spread by focusing on middle-market, non-sponsor deals across the continent. Cestar also discusses credit agreements, defaults, the potential for investment in defense and where by country and sector he sees the best opportunity.

<p>Global investors are looking more at European private credit as US returns get squeezed, according to London-based hedge fund Arini. &ldquo;They want to focus on a place where they think there&rsquo;s rule of law, where they think there&rsquo;s opportunity set &mdash; and that&rsquo;s really been Europe,&rdquo; Mathew Cestar, the firm&rsquo;s president, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Stephane Kovatchev in the latest Credit Edge podcast. Europe pays about 50 basis points more on private loans than the US to compensate for its relative complexity, says Cestar, who leads the Arini&rsquo;s direct lending business. The firm generates additional spread by focusing on middle-market, non-sponsor deals across the continent. Cestar also discusses credit agreements, defaults, the potential for investment in defense and where by country and sector he sees the best opportunity.</p>

The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.

<p>The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.</p>

The Credit Edge by Bloomberg Intelligence

Arini Says European Private Credit Has the Edge Over US Market 

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