Important reason why private credit loan yields have compressed so much 👇 Private equity funds (which demand private credit financing) tend to be drawdown, meaning they can sit on dry powder... Whereas in most private credit funds (BDCs etc.), the capital is deployed immediately. As a result, there has been an imbalance of supply and demand for loans in private markets. In other words, too much money chasing not enough loans, and as a result, the loans have surged in price (and spreads have narrowed). Full interview below!

Full interview with Oaktree's Wayne Dahl: Apple Spotify YouTube