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Floating Rate Offers Natural Hedge Against Inflation in a Rising Rate Environment

Total Returns on Selected Floating and Fixed Rate Indices During Rising Rate Cycles¹

Bar chart with 4 data series.
10 years ending June 30, 2022
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from -11.36 to 23.84.
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Growth of Private Credit: The Move Away from Traditional Bank Lending

The move away from traditional bank lending has led to a significant funding gap for small and mid-sized businesses, resulting in a large and attractive opportunity set.

Primary Market for Highly Leveraged Loans: Banks vs Non-Banks²

Line chart with 2 lines.
As of June 30, 2022
The chart has 1 X axis displaying Time. Data ranges from 1994-12-31 00:00:00 to 2022-06-30 00:00:00.
The chart has 1 Y axis displaying values. Data ranges from 8.7 to 91.3.
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The appeal of a direct lending relationship for borrowers

  • Borrowers are attracted to the private debt arena by the speed, flexibility and predictability displayed by private lenders in comparison to banks
  • Private credit deals need greater customization of structures as well as longer maturity profiles to match borrowers financing needs

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