Private credit lending to large corporates is showing early signs of loosening standards, though the broader market is not considered overheated, industry executives said at the Future Investment Initiative (FII) in Riyadh, according to a report by Reuters.
Anne Walsh, CIO at Guggenheim Partners, noted some overleverage and reduced loan covenants in highly competitive segments, while David Manlowe, CEO of Benefit Street Partners, highlighted margin compression and “froth” in certain deals.
Robert O’Leary of Oaktree Capital meanwhile, added that AI-driven lending is concentrating risk in software-focused loans but the asset class remains broadly supported by strong tailwinds, including fiscal stimulus and tech investment growth.
