Blog
Market commentary, product updates, and insights from the PRISM team.
Showing 10 posts
The Manager Selection Imperative
The private credit environment has shifted from one that rewarded participation to one that will reward selection. Spread compression, rising defaults, and regulatory shifts mean the gap between skilled and unskilled managers will widen.
The Discipline Imperative: Lessons from Asset-Based Lending
True ABL discipline—rigorous verification, deep collateral understanding, and credit integrity over deal velocity—offers lessons for the broader private credit market as cycles mature.
When Headlines Miss Context: Putting Private Credit Losses in Perspective
A $150 million loss sounds catastrophic in isolation. Portfolio context, management track record, and recovery prospects matter more than the headline number.
The Regulatory Wild Card: What Bank Re-Entry Means for Private Credit
The OCC's rescission of leveraged lending guidance removes structural advantages that fueled private credit's growth. How managers respond will determine competitive positioning.
2025 Market Snapshot: Spreads, Leverage, and Coverage
Benchmarking data across 10,000+ middle market loans reveals stable leverage, improving interest coverage, and modest spread compression. The market absorbed the rate shock better than many feared.
What Dry Powder Ratios Actually Tell Us
Aggregate dry powder figures tell an incomplete story. Ratio analysis across strategies reveals that direct lending deployment dynamics remain intact, distressed capital is active, and special situations bears watching.
Private Credit Fundraising: The Golden Age Has Passed
Institutional fundraising has declined across every major private credit strategy since peak years. Capital is migrating to SMAs, funds of one, and retail structures.
The Missing Half of the Default Story
Default rates dominate headlines, but recoveries may be where alpha actually lives in private credit. Expected loss—not default rate alone—is the metric that matters.
Why Private Credit Is Structurally Different From Historically 'Bubbly' Asset Classes
Private credit's buy-and-hold model, asset diversity, and proprietary structure create natural firewalls that historic bubbles lacked. Understanding these differences matters for allocators.
Is There a Private Credit Bubble? Here's What Market Pricing Actually Says
BDC price-to-NAV dispersion suggests the market is distinguishing between managers, not treating private credit as a monolithic asset class. The bubble question requires nuance.