The Credit Edge by Bloomberg Intelligence AllianceBernstein Says Private Debt Will Keep Its Edge
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Mar 6, 2025 Matthew Bass, Head of Private Alternatives at AllianceBernstein, discusses the competitive edge of private debt in today's market. He highlights how private credit remains attractive despite a surge in demand and recent interest rate changes. Bass shares insights on the continued premium private debt holds over publicly traded options and the resilience of commercial real estate. The conversation also touches on emerging opportunities in asset-based finance and the impact of exchange-traded funds on private debt dynamics.
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Private Credit Growth
- Private credit's growth has been institutionally driven, expanding from $150 billion pre-financial crisis to $1.5 trillion today.
- Retail investors are increasingly participating through vehicles like private credit ETFs.
Borrower Demand for Private Credit
- Borrowers value the flexibility and execution certainty offered in private credit markets, even when public markets become more accommodating.
- Private credit allows borrowers to diversify funding sources, crucial during market downturns like the rapid rate hikes witnessed.
Private Credit Expansion
- Private credit's growth stems from a shift from bank and capital markets lending, not just new debt.
- The market is expanding beyond corporate credit to include commercial and residential real estate, and consumer finance.