Surprises from the First Half of 2023: In Private Credit, Steady Issuance Despite Challenging Conditions

Despite the run-up in interest rates and broader market uncertainty, the private fixed income market saw fairly typical levels of issuance in the first half of 2023. However, we think the high-level summary data disguises distinct issuance trends among subsectors of the private placement market.

private fixed income

Issuance generally held steady, except in financials

The traditional core issuers of the market (e.g., utilities and high-quality corporates) continued to tap the private markets at relatively favorable spreads versus the public markets. In our view, this is a testament to the broad access to capital that these borrowers have from private market lenders, even in times of uncertainty.