Key Takeaways
- • Trading in private credit is becoming normalized as the artificial intelligence boom reshapes debt market norms, according to Bloomberg's Going Private newsletter.
- • The shift breaks a long-standing taboo around secondary trading of privately held loans, a practice historically avoided by private credit managers.
- • The newsletter also flags two related themes: Apollo's dispute with teacher organizations and the rising share of business development company (BDC) income derived from payment-in-kind (PIK) debt.
Summary
Bloomberg's twice-weekly Going Private newsletter, written by Ellen DiMauro, reports that trading in private credit is gaining acceptance as the artificial intelligence boom changes debt market norms. The practice was once considered almost taboo in a market built on illiquid, privately negotiated lending relationships, but it is now being normalized as demand for capital tied to AI infrastructure reshapes deal flow and investor expectations.
The source article is brief and presents the development as a broad shift rather than a single transaction, and it does not provide specific deal values, volumes, or named counterparties in the excerpt available. Readers seeking quantitative detail on secondary private credit trading volumes or pricing should consult the full Bloomberg piece.
The same edition also covers Apollo's political strife with teacher organizations and the growing contribution of payment-in-kind debt to BDC income, both of which bear on the liquidity and income quality questions raised by private credit trading. Investors evaluating private credit exposure should note that PIK income, which accrues rather than being paid in cash, can mask the cash generation of underlying portfolios.
The source article is brief and presents the development as a broad shift rather than a single transaction, and it does not provide specific deal values, volumes, or named counterparties in the excerpt available. Readers seeking quantitative detail on secondary private credit trading volumes or pricing should consult the full Bloomberg piece.
The same edition also covers Apollo's political strife with teacher organizations and the growing contribution of payment-in-kind debt to BDC income, both of which bear on the liquidity and income quality questions raised by private credit trading. Investors evaluating private credit exposure should note that PIK income, which accrues rather than being paid in cash, can mask the cash generation of underlying portfolios.
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