Study compares private credit and leveraged loan market structure
Some firms better able to substitute between funding types than others, authors find
Analysis published by the US Federal Reserve highlights differences in the structure of private credit and leverage loan (LL) markets, which could affect the transmission of shocks.
The Feds note, published on August 11, finds that the two markets “differ substantially in market structures, liquidity and funding mechanisms”, even though they serve borrowers from similar industries and credit profiles.
The article notes that both private credit and LL markets are roughly $1.4 trillion in size
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