COVID-19: An Orderly Repricing of Risk in Private Debt

New York (10 April 2020)

Capital markets experienced a rapid decline in valuations since late February, given the equally rapid proliferation of the COVID-19 pandemic. The only comparable event for modern private capital markets is the Great Recession but with key differences. In this article, VRC provides an overview that includes:

  • The investment landscape
  • High yield loan and bond market trends
  • Private market behaviors and considerations
  • A closer look at private credit valuations
  • How to adjust COVID-19 impacts and risks
  • Wider valuation ranges
  • Where we go from here