This podcast explores the growth of private credit in 2024 and what to expect in 2025. Notably, private credit defaults have remained lower than during the COVID period, and returns continue to outpace those of public loans, even as the spread premium has decreased. The competition between public and private credit markets is expected to intensify, leading to a division where public credit handles larger deals while private credit targets smaller transactions or those needing more flexible terms. Although private credit returns are likely to stay appealing, tighter margins are anticipated due to ongoing competition.
