Business development company turmoil is making direct lenders cautious on corporate debt risk, according to PGIM, which oversees more than $200 billion in private credit. “It’ll have a bit of a chilling effect,” Matt Harvey, the firm’s global head of middle-market direct lending, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Matthew Geudtner in the latest Credit Edge podcast. “As a lender you’re a little bit more conservative, you’re a little bit more rational in terms of your view on how to structure the asset, how to price it,” Harvey says. They also discuss default rates, loan marks, the consumer staples sector and relative value in European direct lending.

 

Business development company turmoil is making direct lenders cautious on corporate debt risk, according to PGIM, which oversees more than $200 billion in private credit. &ldquo;It&rsquo;ll have a bit of a chilling effect,&rdquo; Matt Harvey, the firm&rsquo;s global head of middle-market direct lending, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Matthew Geudtner in the latest Credit Edge podcast. &ldquo;As a lender you&rsquo;re a little bit more conservative, you&rsquo;re a little bit more rational in terms of your view on how to structure the asset, how to price it,&rdquo; Harvey says. They also discuss default rates, loan marks, the consumer staples sector and relative value in European direct lending.
&nbsp;

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.

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.

The Credit Edge by Bloomberg Intelligence

PGIM Sees 'Chilling Effect' on Private Credit From BDC Storm

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/a189fcba-e332-458d-a360-b42001375f4a/transcript