Preparing for the Next Chapter in Private Credit

The current private credit environment is often described as a “Goldilocks” scenario, supported by high base rates, strong credit fundamentals, and a PE-backed borrower base that increasingly favors private credit over traditional bank financing. Special situations strategies also remain particularly well positioned in a “higher for longer” rate environment. However, the fast changing US political landscape under the new administration introduces a fresh set of economic, political, and social variables, creating both challenges and significant opportunities for private credit investors.

Investment risks 
Many senior loans are illiquid, meaning that the investors may not be able to sell them quickly at a fair price and/or that the redemptions may be delayed due to illiquidity of the senior loans. The market for illiquid securities is more volatile than the market for liquid securities.

The market for senior loans could be disrupted in the event of an economic downturn or a substantial increase or decrease in interest rates. Senior loans, like most other debt obligations, are subject to the risk of default. The market for senior loans remains less developed in Europe than in the U.S. Accordingly, and despite the development of this market in Europe, the European Senior Loans secondary market is usually not considered as liquid as in the U.S.

The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Important information 
This information is intended for Institutional Investors that are US residents. 
Information is provided as of December 31, 2024, sourced from Invesco Private Credit and Credit Suisse unless otherwise stated.

This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Views and opinions are based on current market conditions and are subject to change.

Invesco Senior Secured Management, Inc. is an investment adviser that provides investment advisory services and does not sell securities. Invesco Senior Secured Management, Inc. is an indirect, wholly owned subsidiary of Invesco Ltd.

All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This is not to be construed as an offer to buy or sell any financial instruments and should not be relied upon as the sole factor in an investment making decision. As with all investments there are associated inherent risks. This should not be considered a recommendation to purchase any investment product. This does not constitute a recommendation of any investment strategy for a particular investor. Investors should consult a financial professional before making any investment decisions if they are uncertain whether an investment is suitable for them. Please obtain and review all financial material carefully before investing.