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Best of Times for Private Credit

Bloomberg Businessweek

Impact of Rising Interest Rates and High Leverage on Loan Portfolio

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This chapter discusses the increase in yield across the senior loan portfolio by roughly 500 basis points in the past year and a half and highlights specific sectors, such as software and technology, where leverage has gotten out of hand and loans were being made based on underlying value. It anticipates challenging dynamics and a reset in terms of leverage in these areas.

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