Why Marathon's Richards Is Worried About Direct Lending

15%: Marathon Asset Management Chair and CEO Bruce Richards warns that default rates in software direct lending could rise to 15%, and says he expects a correction in direct lending. He identifies software as the area with the biggest problems, signaling elevated credit losses and increased downside risk for private-credit funds and lenders with tech exposure.

Analysis

15%: Marathon Asset Management Chair and CEO Bruce Richards warns that default rates in software direct lending could rise to 15%, and says he expects a correction in direct lending. He identifies software as the area with the biggest problems, signaling elevated credit losses and increased downside risk for private-credit funds and lenders with tech exposure.