All Loans articles
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White papersCLO equity insights: Thinking fast and CLO
CLO equity offers a classic example of short- versus long-term thinking. Investor dialogue and market research often emphasize short-term conditions, such as arbitrage spreads or near-term credit sentiment. But, in our view, this underappreciates the compounding impact of long-term optionality in the structure.
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White papersPrivate credit under pressure, but opportunities still exist
The private credit industry, now totaling $2.2 trillion in assets and growing, is coming under increasing pressure as the conditions that supported its rapid growth have fundamentally changed. Driven by strong investor demand for yield and the pullback of traditional bank lending following post-GFC regulatory reforms, private credit funds stepped in to fill the gap, benefiting from greater underwriting flexibility and a willingness to finance borrowers that traditional lenders were less inclined to support.
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White papersUnpicking the US securitised credit universe – asset types and characteristics
We began our mini-series of short articles about securitised credit with an overview piece on what asset-backed securities are and how the mechanism broadly works. In this second piece we will drill down into the different types of securities and their individual characteristics.
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White papersTrade Finance case study: Ensuring food security in Egypt
Federated Hermes participated in a US$1.3bn syndicated trade finance facility to support wheat purchases for the Egyptian government – an essential transaction that underpins social stability.
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White papersLeveraged Finance Asset Allocation Insights: Markets Hit an AI Inflection Point.
The leveraged finance market is currently grappling with an “AI inflection point,” where the early promise of greater efficiency is giving way to a more uncertain outlook, with potential AI-related pressures on revenues and margins. This shift has introduced a sense of anxiety as investors increasingly scrutinize the actual cost of adoption on an issuer-by-issuer basis.
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White papersTrade Finance: Unlock uncorrelated alpha potential
Trade finance – short-term loans to facilitate physical cross-border transactions – plays a vital role in facilitating global trade flows. It is estimated that 80% of world trade is dependent on some form of financing. This can be attributed to tighter credit conditions for obtaining alternative sources of capital. In this paper, we outline why more investors are turning towards this asset class as a diversifier in their portfolios.
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PodcastBDCs, AI Disruption, Iran Oil Shock: What Lies Beneath in Credit Markets
Credit index spreads have been largely unchanged this year — but the calm surface belies a more complex picture underneath. Rising dispersion, AI-driven disruption fears, widening BDC spreads, and the military conflict in the Middle East are reshaping the risk landscape for fixed income investors — without much additional compensation showing up at the credit index level.
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White papersEuropean CLOs: 101
European CLOs offer resilient, floating-rate credit exposure backed by strong protections and a rapidly maturing market.
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White papersCLOs: Positioning for a More Selective Market
CLOs continue to offer durable carry and structural resilience, supported by steady demand and a generally constructive backdrop. As performance grows more differentiated across issuers and sectors, the case for higher‑quality positioning and selectivity has strengthened.
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White papersPrivate credit and debt: Resiliency through interest-rate cycles
The resumption of the Federal Reserve’s easing cycle has prompted many private markets investors to evaluate how a lower-rate regime shapes opportunities and risks across commercial real estate (CRE), private infrastructure debt, investment-grade private credit, and middle market direct lending. Across these segments, one message is consistent: while interest-rate environments influence activity and pricing, private markets create value through fundamentals, structure, and long-term discipline. Those attributes combine to make private credit and debt strategies historically resilient across rate cycles.
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White papersDirect Lending: Views on the Year Ahead
Direct lending isn’t fading—it’s evolving. In this Q&A, Orla Walsh shares her insights on growth, competition, and what disciplined managers need to know as the market matures.
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White papersEuropean Private Loans: A Deep, Diversified, Quality Asset Class
European private loans provide investors with an opportunity to finance market-leading companies at the core of Europe’s economy.
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White papersHigh Yield and Leveraged Loans: Assessing AI’s Impact on a Risk-Return Continuum
The rapid adoption of artificial intelligence by businesses makes its impact a critical consideration in assessing the risk and return potential of lower-rated credits.
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White papersArtificial Intelligence for Behavioral Finance
Artificial Intelligence (AI), particularly Machine Learning (ML) and Deep Learning (DL) techniques, have been extensively used in consumer finance to assess credit risk, develop automated models for loan attribution, and forecast households’ insurance claims and spending. However, their application in analyzing retail investors’ behaviors and designing tools to shape financial advice has emerged more recently.
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White papers2026 Outlook: Direct Lending
In this Q&A, Orla Walsh explores the themes, trends and risks shaping direct lending—underscoring the importance of separating signal from noise as the market navigates the year ahead.
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VideoCRE Loans Are Maturing—What Happens Next?
With commercial property loans maturing amid low property values, the landscape for CRE private credit is shifting fast. As traditional lenders pull back, private credit is stepping in—but at what cost and opportunity?
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White papersDefining and Capitalizing on the ABF Opportunity
Asset-Based finance (ABF) is gaining traction across private credit. In this Q&A with Private Debt Investor, Jim Moore, Head of Private Placements and ABF, shares how the market is evolving and why ABF is becoming a strategic focus for investors.
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White papersUnlocking Opportunity in the Leveraged Loan Market
Advances in fixed income trading and technology have opened up the opportunity for investors to harness leveraged loan exposure through indexing.
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White papersMyth and Legends: European Broadly syndicated Loans
Broadly Syndicated Loans have grown over two decades, offering inflation protection through floating rates and diversification across sectors. Active management and due diligence are key to mitigating risks. Despite myths, European loans show resilience, strong returns, and market depth, with M&G’s long-standing fund exemplifying their potential.
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White papersCRE lending index at fifth-highest level ever
The Mortgage Bankers Association (MBA) recently published its 3Q25 Survey of Commercial / Multifamily Mortgage Banker Originations, which provides quarterly updates on changes in the originations market. It details changes in the volume of loans originated and breaks down the data by property type and investor type. Notably, in the latest release, lending activity rose meaningfully across nearly all segments of the market. The volume of commercial and multifamily loan originations increased 18% from the previous quarter, 36% year-over-year, and is now up 47% year-to-date compared with the same nine-month period in 2024. While seasonal patterns can influence quarter-over-quarter comparisons, the year-over-year and year-to-date gains indicate a broader recovery is underway in the CRE debt space.
