Mid-cap and large enterprises are confronting elevated borrowing costs as low-yielding debt issued during the pandemic reaches maturity. Chief financial officers are deploying structured equity instruments and private credit to manage liquidity requirements.
Private Credit Expansion
Non-bank lenders have captured significant market share from traditional investment banks, offering tailored direct lending solutions. However, higher debt service ratios are squeezing profit margins, forcing aggressive cost-cutting measures across non-core business units.