NEW
YORK, Nov. 21, 2024 /PRNewswire/ -- S&P
Global Market Intelligence has released a report today highlighting
the convergence in public and private credit markets. The newly
published Public and Private Markets Outlook: Converging on
Credit is part of S&P Global Market Intelligence's Big
Picture 2025 Outlook Report Series.
In this new report, S&P Global Market Intelligence's capital
markets analysts highlight how public and private credit markets
have become increasingly intertwined in 2024, and why we expect
this trend to continue in 2025. Public debt markets have grown, but
not at the expense of the $1.5
trillion private markets, which continue their rapid
expansion.
"It may be no coincidence that the fall in Credit Default
Swap (CDS) credit events aligns with the growth in provision of
private credit. Many companies now have recourse to lines of credit
from private sources to an extent not seen in previous cycles. This
trend is likely to continue in 2025 but may raise questions about
the transparency and measurement of credit risk in private credit
funds, where the exposure is ultimately shifted," said
Gavan Nolan, Executive Director at
S&P Global Market Intelligence.
Key highlights from the report include:
- The $1.5 trillion global private
market continues to see new activity as banks seek out new
partnerships. Meanwhile, fund managers are trying to enter public
markets through new investment vehicles.
- Credit events in the CDS market have stayed low, with just two
credit event auctions — the settlement mechanism for CDS — in 2024.
This is the fourth consecutive year that auctions have not exceeded
three annually and brings the 3-year moving average down to the
lowest levels not seen since the credit bubble before the global
financial crisis in 2007-2008.
- With the size of the private credit market approaching
$2 trillion, some regulators and
investors are calling for more rules and transparency in the
largely unregulated space.
- The private credit market, meanwhile, is only growing, with
some estimates calling for total assets under management to more
than double by 2028.
To request a copy of Public and Private Markets Outlook:
Converging on Credit, please contact press.mi@spglobal.com.
S&P Global Market Intelligence's opinions, quotes, and
credit-related and other analyses are statements of opinion as of
the date they are expressed and not statements of fact or
recommendation to purchase, hold, or sell any securities or to make
any investment decisions, and do not address the suitability of any
security.
About S&P Global Market Intelligence
At
S&P Global Market Intelligence, we understand the importance of
accurate, deep and insightful information. Our team of experts
delivers unrivaled insights and leading data and technology
solutions, partnering with customers to expand their perspective,
operate with confidence, and make decisions with
conviction.
S&P Global Market Intelligence is a division of S&P
Global (NYSE: SPGI). S&P Global is the world's foremost
provider of credit ratings, benchmarks, analytics and workflow
solutions in the global capital, commodity and automotive markets.
With every one of our offerings, we help many of the world's
leading organizations navigate the economic landscape so they can
plan for tomorrow, today. For more information, visit
www.spglobal.com/marketintelligence.
Media Contact
Amanda Oey
S&P Global Market Intelligence
+1 212-438-1904
amanda.oey@spglobal.com or press.mi@spglobal.com
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SOURCE S&P Global Market Intelligence