They say there’s also opportunity in asset-based financing and in junk bonds, which have become far less risky over the past decade.
KKR & Co is looking past the angst in public and private credit markets for chances to snap up high-yielding debt and strike favourable deals in the coming year.
As the private investment giant sees it, “fear in the market” about a wave of defaults and a breakdown in the private lending sector is overblown. Even as weakness mounts in some corners of the market, lenders are likely to benefit from still-scarce capital conditions to make deals with high-quality borrowers, according to KKR’s co-head of credit and markets Chris Sheldon and Rory O’Farrell, director of the client and partner group.
