Private credit’s default recovery rates are worse than its biggest rival

By Lisa Lee (Bloomberg) - The danger of private credit firms overvaluing their assets has become one of the booming US$1.7 trillion (NZ$208t) industry’s most contentious topics in recent weeks. New data on how much money they expect to get back from defaulting borrowers will only add fuel to that fire.As the private credit industry has battled with investment bankers over the lucrative business of lending companies money, one of its biggest selling points has been that its tougher loan protections and one-to-one relations with b...