2Q 2023 Investor Presentation
Private Credit Markets
2023 Issuance Factors
Overview
>>>
Risk and
sustainability
Where Moody's
can add value
Constitutes loans, bonds, and other credit instruments
issued by private companies or in private offerings
>> Market has grown significantly since the 2007 - 2008
Global Financial Crisis
>>>
»
Most direct loans are small and unrated
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
» 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, feeder
funds 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., RiskCalcTM and EDF)
~$1.4 Trillion 1
Large Direct Loans
Small Direct Loans
Distressed Debt
Special Situations
Mezzanine
Venture and Private Debt FOF
Note: Private Debt FOF = Private Debt Fund of Funds; CLOS = Collateralized Loan Obligations; BDCs = Business Development Companies.
Source: Preqin, Q4 2022 and market feedback.
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2Q 2023 Investor Presentation
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