Key Takeaways
- • Federated Hermes flagged a group of companies struggling with high leverage and rising cost of debt, a warning highlighted in this week's private credit newsletter.
- • BlackRock publicly endorsed the EU's ELTIF 2.0 framework, offering a vote of confidence in the European long-term fund structure.
- • The newsletter also opened nominations for the publication's Rising Stars program.
Summary
The 8 July 2024 edition of privatedebtinvestor.com's "Loan Note" newsletter highlights two developments for private credit investors. First, Federated Hermes identified companies struggling with elevated leverage and an increasing cost of debt, raising a warning about borrower credit quality in the current rate environment. The article presents this as a red flag on debt burdens rather than a forecast of widespread defaults.
Second, BlackRock endorsed ELTIF 2.0, the revised European Long-Term Investment Fund regulation, which broadens the range of eligible assets and investors for semi-liquid, long-term vehicles. The endorsement is positioned as a vote of confidence in the framework's potential to channel retail and wealth-channel capital into private markets.
The newsletter closes with a call for nominations for the Rising Stars program, which recognizes emerging talent in the private credit industry. Full details of the Federated Hermes analysis and BlackRock's comments are available in the original article.
Second, BlackRock endorsed ELTIF 2.0, the revised European Long-Term Investment Fund regulation, which broadens the range of eligible assets and investors for semi-liquid, long-term vehicles. The endorsement is positioned as a vote of confidence in the framework's potential to channel retail and wealth-channel capital into private markets.
The newsletter closes with a call for nominations for the Rising Stars program, which recognizes emerging talent in the private credit industry. Full details of the Federated Hermes analysis and BlackRock's comments are available in the original article.
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