Insights & Learnings

Private Credit: The Core Middle Market Advantage Amid Rate Cuts & Spread Compression

With lower interest rates and spread compression, many investors are questioning the attractiveness of private credit as loan yields shrink and competition heats up. The core middle market has remained resilient to spread compression, driven by less competition compared to the crowded upper middle market and banks.
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Is Private Credit Overfunded?

Middle market borrowers increasingly turn to private credit as banks tighten lending, with demand fueled by private equity growth and companies staying private longer. Private credit offers investors income stability through reliable contractual cash flows, built-in inflation hedging, low correlation to public markets, and consistent performance in volatile conditions. Growing demand and alignment with private equity expansion proves that private credit is essential.
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PennantPark Private Credit Mid-Year Review

Private credit is not a monolith; distinct trends emerge across market segments. The core middle market flies under the radar while competitive pressures mount at the top end of the market. Yields remain historically attractive even after spread compression. Deal flow bounces back with a buyout rebound on the horizon.
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Deep Dive into BDCs: How to Invest in Growing Businesses

Investing in Business Development Companies (BDCs) provides investors with the potential for income alpha and lower volatility compared to traditional fixed income. Because of their exposure to private markets, BDCs can potentially increase portfolio diversification and reduce overall portfolio risk.
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Private Credit, An All-Weather Asset Class

Private credit can provide investors with diversification benefits due to its low correlation with traditional asset classes. Unlike public markets, it has historically delivered consistent income regardless of market conditions, offering a potentially more stable investment opportunity.
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Are Floating-Rates A Good Thing?

In this uncertain interest rate environment, what can investors make of floating rate loans?
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Sponsor Vs. Non-Sponsor Backed Lending, What You Need to Know

The important differences between sponsor-backed and non-sponsor-backed loans.
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Business Development Company Terms Explained

Demystifying the fees and terms used by Business Development Companies (BDCs).
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Private Credit 101

Private credit, specifically direct lending, is gaining popularity in investor portfolios. With all of this talk about private credit strategies, how about a little refresher?
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The Growth of Private Credit

An explanation behind the rise in popularity of this all-weather asset class.
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Is Bigger Better?

Perception Versus Reality: Despite the claim that bigger companies are safer investments than smaller ones, the data tells us otherwise.
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