Recovery Begins, But Is It U, V Or Even W?
By Oliver Newton – Creditflux
PennantPark Founder and Managing Partner Art Penn participated in Creditflux’s report on the outlook for the credit market in 2020, providing his expertise on direct lending in the United States specifically. Art noted that due to the shift toward lender friendly terms, there have been higher yields, lower leverage, better structures, and potential equity coinvestments.
He also noted the challenges that pricing risk in the current market presents for direct lenders – as there is little visibility on the length and depth of the Covid-19 disruption – while providing valuable perspective from his experience managing through the financial crisis. “The Covid-19 related crisis differs from the financial crisis because of the sudden onset,” he said. “Additionally, there has been an incredibly broad, immediate impact on many sectors of the economy.”