Louay Mikdashi, Head of Multi-Sector Private Credit
Jonathan Shahrabani, Chief Operating Officer - Research Strategies
In this paper, we explore various aspects of the broader strategic realignment unfolding across the U.S. banking sector. Specifically, we address structural shifts in how credit is created (led by the increase in lending to non-depository financial institutions) and how risk is assumed (including further adoption of Significant Risk Transfer transactions).
We also discuss the banking sector’s ongoing pursuit of stability, scale and durable earnings growth as private lenders assume a more active role in long-term financing.
This evolution is not zero-sum for investors, in our view. Rather, we believe it is widening the pipeline of opportunities across public and private credit markets.
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