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Cotiviti pricing war

Before private credit reached its mainstream status, the joke was always that it was there for the deals that the banks didn’t want to do. Over the past couple of years, it’s been there for the deals that the banks couldn’t do.

Right now, a different version of this dynamic is playing out in the battle to finance KKR’s acquisition of Cotiviti.

With the Fed now signaling three rate cuts next year, a fire has been lit under the banks. The “higher for longer” thesis is looking like it will be blown out of the water, and banks are on a tear — as seen by the recent wave of far as a repricing deals in the loan market.