Cyclical Losses Versus Systemic Risk

Lately, private credit has attracted its share of grim headlines, but as Lotfi Karoui — PIMCO Managing Director, Multi Asset Credit Strategist and Co Head of Client Solutions and Analytics — points out, many recent developments in the space should be seen as expected features of a cyclical credit market.

In his debut appearance on Accrued Interest, Lotfi and host Greg Hall dig into the private credit story: from direct lending’s emergence after the Great Financial Crisis, to its explosive growth post-COVID, and what we can expect in the future as investor expectations realign to actual opportunities and risks. They also explore diversification options within the private credit landscape, including asset-based finance (ABF) and real estate.

Join us in welcoming Lotfi to PIMCO and Accrued Interest.

Show notes:

(3:50) The emergence of direct lending after the Great Financial Crisis (7:26) The explosive growth of direct lending post-COVID (15:29) Why are we seeing headlines about private credit? (18:50) The spectrum of credit markets (28:16) Private credit’s other lanes (34:52) Where are we on the asset-based finance journey? (38:50) Systemic vs. cyclical risks in private credit (46:10) What are senior secured loans?
If you enjoyed the episode, explore more of our resources below: Private Credit’s Other Lanes Still Offer Value

Related Episodes:

Apple: • Asset-Based Finance: New Frontiers in Private Credit • Will Headlines Hit Your Bottom Line? Risk and Reality in Today’s Credit Markets

Spotify: • Asset-Based Finance: New Frontiers in Private Credit • Will Headlines Hit Your Bottom Line? Risk and Reality in Today’s Credit Markets

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