Private Credit: How Healthy is Today's Middle Market?
This is a podcast episode titled, Private Credit: How Healthy is Today's Middle Market?. The summary for this episode is: Barings’ Jon Bock weighs in on the current dynamics driving today’s private credit markets from deal activity, to leverage metrics, to spread levels, and discusses the pro’s and con’s of investment structures from public and private BDCs to commingled funds. Episode Segments: 07:20 -- How spreads and leverage levels have changed in the pandemic 12:20 -- Understanding the current environment for originating loans 14:14 -- M&A and the low-rate environment 16:50 -- Areas of weakness in today's market 18:35 -- When senior debt isn't really senior 22:15 -- Is too much capital chasing the same deals? 24:15 -- The case for continued structural growth in the asset class 26:56 -- Assessing value across the entire private debt spectrum 32:38 -- Pros and cons of structures from public and private BDCs to commingled funds IMPORTANT INFORMATION Any forecasts in this podcast are based upon Barings’ opinion of the market at the date of preparation and are subject to change without notice, dependent upon many factors. Any prediction, projection or forecast is not necessarily indicative of the future or likely performance. Investment involves risk. The value of any investments and any income generated may go down as well as up and is not guaranteed. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. Any examples set forth in this podcast are provided for illustrative purposes only and are not indicative of any future investment results or investments. The composition, size of, and risks associated with an investment may differ substantially from any examples set forth in this podcast. No representation is made that an investment will be profitable or will not incur losses. Barings is the brand name for the worldwide asset management and associated businesses of Barings LLC and its global affiliates. Barings Securities LLC, Barings (U.K.) Limited, Barings Global Advisers Limited, Barings Australia Pty Ltd, Barings Japan Limited, Barings Real Estate Advisers Europe Finance LLP, BREAE AIFM LLP, Baring Asset Management Limited, Baring International Investment Limited, Baring Fund Managers Limited, Baring International Fund Managers (Ireland) Limited, Baring Asset Management (Asia) Limited, Baring SICE (Taiwan) Limited, Baring Asset Management Switzerland Sarl, and Baring Asset Management Korea Limited each are affiliated financial service companies owned by Barings LLC (each, individually, an “Affiliate”). NO OFFER: The podcast is for informational purposes only and is not an offer or solicitation for the purchase or sale of any financial instrument or service in any jurisdiction. The material herein was prepared without any consideration of the investment objectives, financial situation or particular needs of anyone who may receive it. This podcast is not, and must not be treated as, investment advice, an investment recommendation, investment research, or a recommendation about the suitability or appropriateness of any security, commodity, investment, or particular investment strategy. Unless otherwise mentioned, the views contained in this podcast are those of Barings and are subject to change without notice. Individual portfolio management teams may hold different views and may make different investment decisions for different clients. Parts of this podcast may be based on information received from sources we believe to be reliable. Although every effort is taken to ensure that the information contained in this podcast is accurate, Barings makes no representation or warranty, express or implied, regarding the accuracy, completeness or adequacy of the information. Any service, security, investment or product outlined in this podcast may not be suitable for a prospective investor or available in their jurisdiction. Copyright in this podcast is owned by Barings. Information in this podcast may be used for your own personal use, but may not be altered, reproduced or distributed without Barings’ consent. 20-1411304