Borrowing Terms Loosen as Direct Lending Competition Rises

Companies are seeing more favorable borrowing terms in private credit markets as lending competition continues to rise outside the banking system.

根据“的情况”按较低的利率和严格的契约提供贷款。2017年经济融资周三由替代信贷委员会周三发布，私人信贷委员会的替代投资管理协会。本集团在今年的调查中发现，私人信贷资金贷款的五十五公司公司拥有私募股权公司。

The Alternative Credit Council, which polled 60 private credit managers with about $500 billion in assets under management, said borrowers are able to demand covenant-light loans as the power has shifted in their favor over the past three years. About 67 percent of larger private credit managers, or those with more than $1 billion of committed capital, reported that covenants have become less demanding.

替代信贷委员会估计，自2008年金融危机自2008年金融危机以来，在2008年的金融危机以来，轨道上的资产持续超过1万亿美元，贷款一直在增加势头。根据该报告，起源于中市公司的直接贷款资金起源于中型企业公司的贷款，这一直吸引了相对较高的收益率的投资者，价格为10％至15％的平均内部返回。

With the private credit industry lending to businesses at record levels, the rise of covenant-light loans may be setting the stage for more distressed investment opportunities. Covenant-light loans, which lack financial maintenance requirements, are more typically seen in the broadly syndicated loan market where financing deals are originated by banks.

"We are getting late in the cycle on the credit side," Anton Pil, global co-head of alternatives at JPMorgan Chase & Co.'s asset management business, said in an interview. "We are spending a lot more time on getting ready for looking for special situations, as the distressed markets are going to pick up again."

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Private credit managers are increasingly lending to the infrastructure and real estate industries, sometimes in collaboration with banks, according to the Alternative Credit Council report.

Jon Rickert, investment director at GAM's real estate finance team, said that while pricing on real-estate financing deals had declined over the past three years, terms were looser before the 2008 financial crisis.

"If you compare it to the kinds of terms available prior to the financial crisis, then the terms that are available are much worse for borrowers," Rickert said. "If you are comparing it to the pricing that was on offer two or three years ago, sure the market is tighter."