Why Marathon's Richards Is Worried About Direct Lending

Richards expects default rates in software-focused direct lending to rise to 15%, signaling a broader correction in direct lending. As Chair and CEO of Marathon Asset Management speaking on Bloomberg, he identified software as the sector with the biggest problems, implying heightened credit risk and potential losses for private credit investors concentrated in that area.

Analysis

Richards expects default rates in software-focused direct lending to rise to 15%, signaling a broader correction in direct lending. As Chair and CEO of Marathon Asset Management speaking on Bloomberg, he identified software as the sector with the biggest problems, implying heightened credit risk and potential losses for private credit investors concentrated in that area.