The Credit Edge by Bloomberg Intelligence Neuberger Sees More Gain Than Pain in Private Debt Market
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Jan 15, 2026 Susan Kasser, Head of Private Debt at Neuberger Berman and seasoned veteran from firms like Carlyle and Goldman Sachs, shares her insights on the private debt market. Despite negative media coverage, she reveals that direct loans offer a significant premium over traded debt, with Neuberger's impressive one-basis-point annualized loss rate. Kasser discusses how AI enhances deal sourcing and stresses the importance of selectivity. She analyzes the robust pipeline in U.S. direct lending and addresses sector focuses, while cautioning about persistent negative headlines.
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Consistency Through Selective Underwriting
- Neuberger Berman's private debt program has had essentially zero annualized loss since inception, at about 0.01%.
- Susan Kasser attributes this to patient, selective underwriting and long-term committed capital rather than short-term market timing.
LP Relationship Built Into Sourcing
- Neuberger built its direct lending team adjacent to its private equity fund-of-funds business to gain privileged deal access.
- That positioning lets them say no without cutting off future deal flow, which improves selectivity and outcomes.
Quality Lowers Loan-To-Value Risk
- Direct lending can achieve higher portfolio quality even if leverage metrics resemble the broader market because loans secure stronger companies.
- That leads to lower loan-to-value and better downside protection despite similar leverage multiples.
