3Q 2022 Investor Presentation
Overview of Private Credit Markets 1,2
~$1.2 Trillion 1
~$50B
Large Direct Loans
($300M +)
SIZE
>> Most direct loans are small and unrated
» ~$50B of direct loans executed in 2021 were $300M +
Estimated to potentially double in size in 2022 to $90-$100B2 due to disruption in public
capital markets
~$460B
RISK AND SUSTAINABILITY
Small Direct Loans
>> Market has grown rapidly; remains opaque, lacking oversight and untested in current market cycle
>> Credit risk heightened by reduced transparency and rising leverage, industry concentrations key
» Investors typically pay higher borrowing costs for execution and certainty in volatile markets
Distressed Debt
~$280B
WHERE MOODY'S CAN ADD VALUE
~$210B
Special Situations
» Delivering MIS insightful thought leadership through research and active market engagement
>> Providing private ratings and independent credit assessments on loans and/or portfolios, in
addition to ratings for private credit vehicles, such as Middle Market CLOS, BDCs and private
credit funds, in anticipation of issuers coming to the public markets in the future
» Expanding MA sales pipeline for portfolio and credit analysis products (e.g. RiskCalc and EDF)
~$200B
Mezzanine
Note: Private Debt FOF = Private Debt Fund of Funds; CLOS = Collateralized Loan Obligations; BDCs = Business Development Companies.
Source: Preqin, Q4 2021 and market feedback.
1.
2.
Size of $90-$100B is an estimate based on market feedback.
MOODY'S | DECODE RISK. UNLOCK OPPORTUNITY.
~$45B
Venture and
Private Debt FOF
3Q 2022 Investor Presentation
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