Market Leader in Private Credit

Private credit may well be in a “Waiting for Godot” moment—marked by growing anticipation of some unknown reckoning that continues to be deferred. As the industry continues to adapt to various market uncertainties, KBRA notes signs of improving credit quality for some borrowers, while still observing a subset of borrowers …

Once considered a niche market, private credit securitizations1 have become a core element of the structured finance (SF) landscape, particularly within the asset-backed securities (ABS) and structured credit (SC) sectors. Since 2022, approximately 20% of all KBRA-rated SF transactions have been privately placed. The shar…

Given private credit’s rapid growth, coupled with an economy potentially on the verge of a credit cycle, the increased attention and scrutiny on the industry is warranted. However, KBRA notes that some of the press coverage and market research regarding private credit is often ungrounded in data or lacking a nuanced unders…

Amid ongoing trade tensions, tariffs, market volatility, and a possible economic slowdown, KBRA views alternative asset managers—particularly those geared toward private equity (PE) and private credit (PC)—as more resilient on average than other types of financial institutions.

In this report, an update to our Q4 analysis, KBRA continues to track and present several key metrics in a dashboard format, sourced from quarterly collateral loan tapes provided by the issuers of KBRA-rated recurring revenue loan (RRL) asset-backed securities (ABS) (see Appendix 1).

Private credit lenders have suffered relatively few losses from lending to high-growth software companies. However, as the strategy matures and underwriting standards evolve, KBRA sought to understand if the relatively low loss rate is sustainable.