The Credit Edge by Bloomberg Intelligence Ares Says Private Lenders Are Better Placed Than Public to Avoid Pain
Oct 16, 2025
Joel Holsinger, Partner at Ares Management, shares his insights on why private credit can better weather market blowups compared to public debt. He emphasizes the extensive due diligence allowed in private lending, which can unearth risks before they become crises. The conversation also covers the growing sectors of asset-backed finance and data-center lending. Holsinger highlights the need for cautious underwriting, especially amid potential market overheating, while also discussing innovative transactions and the importance of maintaining selective investment strategies.
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Private Credit Lets You Dig Deeper
- Private credit allows far deeper diligence and covenants than liquid markets, reducing blind spots.
- Joel Holsinger says private lenders act like chefs while public investors are food critics with limited questions.
Student Loan Defaults Were Front-Loaded
- Joel recounts a student-loan portfolio where most defaults were concentrated in for-profit schools.
- He highlights that defaults were front-loaded in the first 18 months because many borrowers never graduated.
SRTs Lost Appeal As Capital Flooded In
- Significant risk transfer (SRT) markets became crowded and less attractive as pricing fell and risk rose.
- Joel notes most SRT flow turned uninteresting despite ARIES being active earlier.