Private Credit’s Other Lanes Still Offer Value with Lotfi Karoui
PIMCO Accrued Interest
High Yield vs Loan Markets vs Direct Lending
Lotfi argues high yield is higher quality and explains growing overlap and future tests between direct lending and syndicated loans.
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
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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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