Understanding Private Credit’s Attraction
The United States is centerfold in the credit portfolios catalog. Oaktree Capital, an asset management company, cited that the country has “the most accommodative capital markets in the world.” As reviewed in Great Point Capital’s August newsletter, there are numerous factors that contribute to private credit’s sustainability in the current climate.
Key Takeaways with Private Credit
Generally, private credit is less liquid than high-yield bonds. The latter is traded on public exchanges, but may face volatility.
The total value of private markets increased more than twofold from $6.88 in 2019 to $14.24 trillion in 2024.
Since 2021, private credit has been the leading asset in private markets.
One Great Point: When considering private credit or other asset class forms, weighing their differences and volatility is an imperative step before modifying one’s portfolio.
Source: J.P. Morgan