Assessing the direct lending landscape

Distinguishing headlines from market fundamentals.

Private credit has captured headlines-but what’s really happening beneath the surface?

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Key Takeaways

While private credit defaults have risen from low levels, the bigger story is the variation across credits and managers
raditional middle-market direct lending can offer stronger covenant protection and lower leverage than more competitive upper-market deals
s dispersion grows across managers and sectors like software, selectivity and downside protection matter more than ever

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