Trade out or hold - will direct lenders remain loyal?
- Lara Gibson
One of the defining features of the direct lending market is that direct lenders donât sell. Lenders can charge borrowers high pricing and fees, partly known as the âilliquidity premiumâ because of their buy-and-hold approach, which guarantees their reliability. But as the first downturn since the explosion of private credit in Europe hits, will direct lenders stay loyal, or will they trade out in the murky emerging secondary market?