Recently, Michael von Bevern, Co-Managing Director – Americas, and Harvey Tian, Head of Loan Agency and Loan Administration – Americas at Suntera Fund Services, spoke with Private Debt Investor on keeping pace with the rapidly growing private credit market.
When speaking about what to expect for rate cuts in the second half of 2024, Harvey says:
“Following the recent non-farm payroll numbers, a rate cut is nearly guaranteed this year, which could create a wave of refinancing in the market. Borrowers will try to access new deals when they can. When there is a rate cut, the margin and spread tend to go up. Any floating rate loans that closed after covid or around that time will probably have a low margin. However, fixed rate loans will probably try to refinance at a lower rate.”
You can access the PDI PRivate Debt US Report here and Suntera Fund Services article here.
