But also this can be positive. Personal credit is much bigger and much different than 15 years ago, or even five years ago today. Fast development was followed closely by a significant deterioration in loan quality.
Personal equity organizations found that personal credit funds represented a knowledge, permissive group of lenders ready to provide debt packages so large and on such terrible terms that no bank would have them on its stability sheet. If high-yield bonds had been the OxyContin of personal equity’s debt binge, personal credit is its fentanyl. Increasing deal rates, dividend recaps, and roll-up strategies are typical behaviors that are bad by personal credit. Continue reading “Yet just like personal equity fueled an increase that is massive interest in business financial obligation”