Art Penn Quoted in Bloomberg Law Article

Direct Lenders Suddenly Cut Risk Even With $413 Billion Warchest

David Brooke and Lisa Lee – Bloomberg Law

“There’s a lot of cross-currents in direct lending. On the one hand you are protected because you are floating rate, but on the other you have to be more cautious because everyone has to contemplate a higher probability of a recession sooner.”

Art Penn, Founder and Managing Partner of PennantPark, was quoted in a @Bloomberg Law article on private credit firms reducing risk by pivoting to businesses that can withstand an economic downturn, seeking higher interest rates on new financing packages. Art noted that for funds that have the flexibility, it may be more attractive to purchase syndicated loans trading at 85 cents or 90 cents on the dollar, rather than providing new private debt with lower all-in yields.