Private Credit Market Barriers Are Driving the Premium to Lower Levels

The maximum size available at issuers has grown along with the investor base and some larger companies have raised money through private credit. We've seen some deals in the three billion dollars of debt range recently. So you shouldn't have the same barriers that I just mentioned. The missing ingredient that we haven't touched on yet is leverage. In 2016 the US Federal Reserve began to emphasize their leverage lending guidelines which were intended to stop banks from originating loans to companies where the leverage of the company was too high.