Why Private Credit's Been Booming Even as Interest Rates Go Up | Odd Lots

It's no secret that the market for private credit has boomed in recent years. The surprising thing is that it has continued to do so even as interest rates have surged, defying many people's expectation that this relatively new market would suffer once an era of "loose" money comes to an end. Instead, the market for private credit in the US now rivals the size of the market for publicly-traded, junk-rated corporate bonds. But what exactly is private credit? How does it differ from broadly-syndicated stuff like leverage loans and corporate debt? How susceptible is it to higher rates? What is driving continued interest in this asset class? And what could cause it to wobble? On this episode we speak with Laura Holson of New Mountain Capital — where she manages about $9 billion across various private credit investments — about how the industry works. See omnystudio.com/listener (https://omnystudio.com/listener) for privacy information. Bloomberg's Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Monday and Thursday for interviews with the most interesting minds in finance, economics and markets. Subscribe to Bloomberg Podcasts: https://bit.ly/BloombergPodcasts Check out more Odd Lots:    • Odd Lots (Audio)   Get the Odd Lots newsletter via https://www.bloomberg.com/account/new... And for all things Odd Lots, visit https://www.bloomberg.com/oddlots Visit our other YouTube channels: Bloomberg Television:    / @markets   Bloomberg Originals:    / bloomberg   Quicktake:    / @bloombergquicktake   #Bloomberg #Podcast #OddLots Visit us: https://www.bloomberg.com/podcasts Follow Bloomberg Podcasts on Twitter:   / podcasts   For coverage on news, markets and more: http://www.bloomberg.com/video