The Credit Edge by Bloomberg Intelligence
Blackstone Eyes $30 Trillion Private Credit Bonanza
Oct 3, 2024
Rob Horn, Global Head of Infrastructure and Asset-Based Credit at Blackstone, shares insights on the booming private credit market, projected to reach $30 trillion. He highlights the advantages of hard-asset collateral in securing premium returns. Tolu Alamutu, a senior credit analyst at Bloomberg Intelligence, discusses trends in European real estate and credits. Despite geopolitical risks, he maintains a positive outlook for residential markets. The conversation also explores investment opportunities in digital infrastructure and the growing appeal of single-family rentals.
53:13
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Quick takeaways
- Blackstone anticipates private credit growth to $30 trillion, driven by energy transition and infrastructure investments, indicating a shift to mainstream markets.
- Despite geopolitical risks, stable consumer credit conditions for high-quality borrowers highlight selective investment opportunities in a bifurcated credit landscape.
Deep dives
Market Resilience Amid Volatility
Despite increasing volatility fueled by geopolitical tensions and economic uncertainties, credit markets show resilience. Following recent rate cuts, lower borrowing costs provide relief for struggling companies, particularly benefiting those with lower credit ratings, such as Triple C rated bonds. The ongoing demand for corporate debt surpasses net supply, offering a technical advantage for credit markets. However, challenges remain, as markets prepare for potential disruptions linked to the upcoming US elections and an uptick in defaults and bankruptcies.
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