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The Rising Risks In The Private Credit Lending Bonanza | Andrzej Skiba

Forward Guidance

NOTE

Different Markets within Capital Structure

Companies with bonds and loans tend to maintain both in their capital structure. When the leverage loan market struggles, issuers might turn to the high yield bond market. However, the high yield bond market primarily serves as a refinancing market, while new financial activities like M&A or dividend distributions are mainly in the leverage loan and private credit sectors. This shows a stable investor base between leverage loan and high yield bond markets.

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