Nik Singhal, Group Head of Direct Lending, recently spoke with Octus about the top trends to watch shaping private credit in 2025. One on the radar is stabilizing spreads, which have the potential to widen in this declining rate environment.
Highlights from Nik:
- Singhal predicts “that the supply-demand imbalance between capital raised by private credit firms and the number of investable opportunities will correct itself.”
- Singhal said he thinks the opportunity set available will end up matching the capital available. “So, at a minimum, I think it’s hard to see spreads getting tighter,” he said. “If anything, they might widen on the margin. I’m not seeing any reason for them to go up 75 bps.”