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Laxman Pai, Opalesque Asia: S&P Global Market Intelligence released a report highlighting the convergence in public and private credit markets, titled Public and Private Markets Outlook: Converging on Credit.
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 the trend is expected 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. "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," the report said.
Meanwhile, 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 report pointed out.
The private credit market, meanwhile, is only growing, with some estimates calling for total assets under management to ...................... To view our full article Click here
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