Goldman Sachs Exchanges The case for private credit
38 snips
Apr 15, 2025 James Reynolds, Global Co-Head of Private Credit at Goldman Sachs Asset Management, and Lotfi Karoui, Chief Credit Strategist at Goldman Sachs Research, dive into the burgeoning world of private credit. They discuss its explosive growth to $2.1 trillion and its appeal to borrowers, especially in private equity. The duo explores how private credit serves as a resilient and flexible asset during economic turbulence. They also tackle risks and potential benefits, emphasizing how strategic shifts could stabilize financial systems amidst uncertainty.
AI Snips
Chapters
Transcript
Episode notes
Private Credit Growth
- Private credit has grown significantly, becoming a distinct asset class.
- It's smaller than private equity but rivals public debt markets like high-yield bonds.
Private Credit Appeal
- Private credit offers certainty and flexibility, appealing to borrowers.
- This is especially true for privately owned companies and those owned by private equity firms.
Private Credit and Volatility
- Private credit markets are insulated from market volatility.
- This is due to their illiquid nature and focus on the real economy rather than sentiment.