The Unicrunch is our US private credit newsletter, in which we break down everything from unitranches to ABL. Find out more about what we do for private credit.

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As days go by, it is getting increasingly more difficult to think of private credit as a long term investment strategy.

The headlines are filled with those more typically seen in the public debt markets, with lenders taking the keys or engaging in LMEs. Just a few months ago, the stories were highlighting the stubbornly low default rate.

It’s not supposed to be this way for the self-proclaimed golden age of private credit. But here we are with the exuberance of the extra yield from higher rates now giving way to sustained cost pressures on portfolio companies.

What to make of the risks if you’re an investor? This time last year, private credit was underwriting multi-billion dollar unitranches, but now banks are having all the fun. With so much changing in just 12 months, perhaps a savvy investor may want an easy exit should things sour. And still, of course, want in as yields remain high.