Investing Ideas

Searching for yield

The tailwinds supporting direct lending

By: Audie Apple Matt Barron

Updated: 2/8/2023

Key Takeaways

Direct lending has produced attractive returns for yield-seeking investors over two decades.
Borrowers pay a premium to direct lenders, which boosts cash yields for investors.
Structural tailwinds portend continued growth for direct lending and suggest the attractive return history may persist.

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