NYC conference wrap: reframing the risk debate
Private credit is growing at a rapid pace. Look to Moody’s for comprehensive, in-depth opinion on private credit risk across a full range of investment vehicles, including business development companies (BDCs), asset managers and middle market collateralized loan obligation (MM CLO) tranches. Browse our research, videos, and capabilities below to elevate your insights into the risks and opportunities in private credit markets.
Featured
As private debt markets expand, performance dispersion is appearing in private credit portfolios – a stark reminder that performance dispersion may only reveal itself when credit challenges emerge.
NYC conference wrap: reframing the risk debate
Private credit continues to push new strategic frontiers, along with risks
Alternative asset managers seek removal of barriers to private markets for individual investors. Regulators are supportive but also wary of potential dangers.
Differences in regions' regulatory capital regimes are one factor influencing life insurers' investment choices.
Alternative asset managers seek removal of barriers to private markets for individual investors. Regulators are supportive but also wary of potential dangers.
The share of defaulted companies with a PE presence has risen since 2020 and is negatively impacting first-lien loan recoveries.
Smaller MM borrowers whose debt backs CLOs we rate remain more vulnerable to high interest rates and other macroeconomic shocks than their larger counterparts.
As private debt markets expand, performance dispersion is appearing in private credit portfolios – a stark reminder that performance dispersion may only reveal itself when credit challenges emerge.
Private credit is non-bank lending to mostly private-equity-owned, middle-market companies that aren’t publicly traded or issued. It is one of the fastest-growing segments in the lending landscape, with close to $1.7 trillion in assets under management, of which $500 billion is capital waiting to be deployed. Private credit’s rapid growth, coupled with its opacity and comparatively light regulation, place a premium on insight into current and evolving risks in the sector.
Moody's
Analyze and monitor public and private companies of potential borrowers faster with Moody's highest-quality data and analytics in one integrated solution. Assess risk and gain deeper insights from multiple angles, including financials, Moody’s market-implied ratings and interactive scorecards, debt maturity, ownership structures, Moody’s Ratings sector research, and more. Facilitate your credit workflows with our trusted analytical frameworks, more than a century of expertise in risk, all delivered through AI and cutting-edge technology.
Moody's Ratings
Increase confidence with investors and potentially unlock wider access to capital
Moody’s Ratings delivers independent, in-depth, and transparent opinions on credit risk through its credit ratings. We can provide public and private credit ratings on leading private debt investment vehicles, including Business Development Companies (BDCs), Collateralized Loan Obligations (CLOs), Hedge Fund Collaterized Fund Obligations (HF CFOs), Managed Funds and Rated Note Feeder Funds. As an input to our analysis of a Moody’s rated facility such as structured finance, public infrastructure projects or BDCs, we provide Credit Estimates (CEs), an opinion of the approximate credit quality of individual securities, financial contracts, issuers, corporate families or loans.
Moody's
Expedite your due diligence process on potential borrowers or investors
To support due diligence and in-depth analysis on potential borrowers, Moody’s offers the most powerful comparable data resource on private companies worldwide, including firmographic data, financials and ownership structure on 450+ million public and private companies. We provide a broad range of data to support an integrated assessment across risk categories, such as KYC and ESG.
Moody's
Assess the credit risk of private credit borrowers and provide an independent assessment to your investors
Decision analytics and early warning alerts backed by Moody’s comprehensive and time-tested risk models provide actionable credit insights on 450+ million companies. Our platform selects and updates the best Probability of Default (PD) model based on the most relevant data available, so you can easily analyze an entire portfolio without making complex modeling decisions.
Moody's Ratings
Gain transparency and insights on underlying assets within funds
Leverage research and analytics from Moody’s Ratings to gain insights on sector trends and assess and monitor creditworthiness of Private Credit market participants and investment vehicles.
Moody's
Streamline and improve the entire lending process, from automating the spreading of financials leveraging machine learning to advanced monitoring capabilities with 360-degree views, dashboards, reports, and automated alerts.
Alleviate operational challenges with powerful analytics and validation capabilities, including managing the data intake, enabling monitoring and analytics, and providing facility reconciliation.
Moody's
Understand your portfolios’ risk and return characteristics
Manage complex credit compliance, borrowing base, analysis and reporting for private assets within your portfolio.
Gain a clear understanding of the current and historical drivers of portfolio performance and risk with Moody’s multi-asset front-office decision support tool for portfolio managers.
Moody's
Analyze and monitor public and private companies of potential borrowers faster with Moody's highest-quality data and analytics in one integrated solution. Assess risk and gain deeper insights from multiple angles, including financials, Moody’s market-implied ratings and interactive scorecards, debt maturity, ownership structures, Moody’s Ratings sector research, and more. Facilitate your credit workflows with our trusted analytical frameworks, more than a century of expertise in risk, all delivered through AI and cutting-edge technology.
Moody's Ratings
Increase confidence with investors and potentially unlock wider access to capital
Moody’s Ratings delivers independent, in-depth, and transparent opinions on credit risk through its credit ratings. We can provide public and private credit ratings on leading private debt investment vehicles, including Business Development Companies (BDCs), Collateralized Loan Obligations (CLOs), Hedge Fund Collaterized Fund Obligations (HF CFOs), Managed Funds and Rated Note Feeder Funds. As an input to our analysis of a Moody’s rated facility such as structured finance, public infrastructure projects or BDCs, we provide Credit Estimates (CEs), an opinion of the approximate credit quality of individual securities, financial contracts, issuers, corporate families or loans.
Moody's
Expedite your due diligence process on potential borrowers or investors
To support due diligence and in-depth analysis on potential borrowers, Moody’s offers the most powerful comparable data resource on private companies worldwide, including firmographic data, financials and ownership structure on 450+ million public and private companies. We provide a broad range of data to support an integrated assessment across risk categories, such as KYC and ESG.
Moody's
Assess the credit risk of private credit borrowers and provide an independent assessment to your investors
Decision analytics and early warning alerts backed by Moody’s comprehensive and time-tested risk models provide actionable credit insights on 450+ million companies. Our platform selects and updates the best Probability of Default (PD) model based on the most relevant data available, so you can easily analyze an entire portfolio without making complex modeling decisions.
Moody's Ratings
Gain transparency and insights on underlying assets within funds
Leverage research and analytics from Moody’s Ratings to gain insights on sector trends and assess and monitor creditworthiness of Private Credit market participants and investment vehicles.
Moody's
Streamline and improve the entire lending process, from automating the spreading of financials leveraging machine learning to advanced monitoring capabilities with 360-degree views, dashboards, reports, and automated alerts.
Alleviate operational challenges with powerful analytics and validation capabilities, including managing the data intake, enabling monitoring and analytics, and providing facility reconciliation.
Moody's
Understand your portfolios’ risk and return characteristics
Manage complex credit compliance, borrowing base, analysis and reporting for private assets within your portfolio.
Gain a clear understanding of the current and historical drivers of portfolio performance and risk with Moody’s multi-asset front-office decision support tool for portfolio managers.
THE CUSTOMER
Asset management firm focusing on private credit and middle markets with CLOs, leverage facilities, loans, private assets and other structures in their portfolio.
THE BUSINESS CASE
The firm is looking for a solution that could help streamline and automate their current time-consuming and manual surveillance and reporting process. Specifically, they needed a platform that enabled quick access and management of fund allocation decisions, handle complex processes, provided accurate, auditable and standardized reporting, and facilitated hypothetical scenario analysis.
THE SOLUTION
Moody’s Manager Module provides our customer a comprehensive solution to manage complex credit compliance, borrowing base, analysis, and reporting for private assets within their portfolio. Implementing Manager Module will provide benefits for the front, middle and back office:
Join us as we discuss strategies and views in an environment characterised by slower economic growth, higher interest rates, lower valuations and a plethora of geopolitical risks capable of destabilising markets