CFA Lecture

Private Debt


Private Debt – sustainable means of long-term financing or just another financing frenzy?

Reiner M. Löslein will elaborate on the background and the reasons for the recent growth in European Private Debt and give a short overview of the current market situation. Increased direct lending activities are a result of low interest rates, leading money managers to seek yield from alternative assets and banks moving away from certain types of lending. In addition innovative debt structures have also emerged as private lenders can be more flexible and are not subject to restrictive capital requirements. This combination of reduced bank activity and innovative structures - beneficial to both the borrower and lender - has created an opportunity for Private Debt in Europe. In the US, the Private Placement Debt market has existed for some time and a similar market is now beginning to take shape in Europe.