The Credit Edge by Bloomberg Intelligence Blackstone Says Private Credit Pays a Lot Better Than Liquid Debt Markets
16 snips
Sep 18, 2025 
Michael Zawadzki, Chief Investment Officer of Blackstone Credit & Insurance, shares insights on the allure of private credit, highlighting its 150-200 basis points premium over traditional debt markets. He explains why speed and value are attracting borrowers to direct lenders and the growing interest from insurers in long-duration private investments. The conversation also touches on the potential in data center financing, the competitive landscape of managers, and the anticipated rise in mergers and acquisitions as the market evolves.
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Underwrite Software With Product Scorecards
- For software lending, assess AI disruption risk with a product underwrite and scorecard alongside financial metrics.
- Use technologist teams to evaluate product endurance and switching costs before underwriting.
Watch Borrower Size And Cyclicals
- Larger, scale borrowers perform better; lower-middle-market and subscale borrowers show more vulnerability.
- Sectors with high post-COVID run-ups and cyclical capex needs show greater weakness.
Dispersion Will Increase Among Managers
- Manager dispersion will rise as new entrants lack origination and asset-management capabilities.
- Established managers with origination scale and asset-management skills will differentiate performance.