PGIM Sees 'Chilling Effect' on Private Credit From BDC Storm

About this episode

The episode discusses the cautious approach of direct lenders towards corporate debt risk due to turmoil in business development companies, featuring insights from PGIM's Matt Harvey.

Business development company turmoil is making direct lenders cautious on corporate debt risk, according to PGIM, which oversees more than $200 billion in private credit. “It’ll have a bit of a chilling effect,” Matt Harvey, the firm’s global head of middle-market direct lending, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Matthew Geudtner in the latest Credit Edge podcast. “As a lender you’re a little bit more conservative, you’re a little bit more rational in terms of your view on how to structure the asset, how to price it,” Harvey says. They also discuss default rates, loan marks, the consumer staples sector and relative value in European direct lending.   See omnystudio.com/listener for privacy information.

People in this episode

Hosts: James Crombie, Matthew Geudtner

Guest: Matt Harvey

Topics covered

• private credit
• corporate debt risk
• business development companies
• default rates
• European direct lending

Keywords

• private credit
• corporate debt
• business development companies
• default rates
• European direct lending

Mentioned in this episode

Organizations: PGIM

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