Where Does Private Credit Fit? Follow the Cash More than two decades ago, a client signed a 30-day factoring contract with us. The client is still with us, and the contract is still 30 days. That is one facility in one of our five lending verticals. Behind it, cash has moved continuously: invoices purchased, invoices collected, and funds advanced again…
Where Does Private Credit Fit? Start With Correlation In 2022, the S&P 500 fell 18.11%. The US Aggregate Bond Index fell 13.01%. The S&P High Yield Index fell 11.27%. Three asset classes typically treated as distinct exposures, moving together under the same pressure, in the same year. When different categories share the same driver Exposure to interest rates, credit spreads,…
Liquidity, Designed on Purpose Ask anyone paying attention to private credit headlines over the past six months what the biggest concern has been, and liquidity mismatch comes up fast. On a recent webinar introducing Garrington Private Credit to the US market, our Executive Vice President and Chief Risk Officer, Erica Axani, was asked directly about it. The mismatch behind…
When a Borrower Hits Distress: What a Disciplined Workout Actually Looks Like Every lender eventually has a borrower run into trouble. What separates a well-run credit book from a troubled one isn’t whether distress happens. It’s what the lender built in advance to handle it. On a recent webinar introducing Garrington Private Credit to the US market, our…
Discipline You Can Count: The Numbers Behind Our Underwriting It’s one thing to say a lending platform is disciplined. It’s another to show what that discipline actually looks like in the numbers. On a recent webinar introducing Garrington Private Credit to the US market, our President and Chief Credit Officer, Tammy Kemp, and our Executive Vice President and…
Part Three of Three: How a Workout Actually Works In Part One, we talked about the capital stack and why position matters. In Part Two, we talked about collateral, and why not all of it behaves the same way under stress. This is where the theory gets tested. A default is the moment everything we described in…
Not All Collateral Is Created Equal. Part Two of Three: What We Lend Against In Part One, we talked about the capital stack and why position matters. Senior secured lending gives you the first legal claim on a borrower’s assets. But that claim is only as good as the assets behind it. This is where a lot…
Where You Sit Changes Everything With the World Cup underway, even we Canadians are calling it football. Offence sells tickets, defence wins championships. In private credit, yield gets the attention. Protecting capital is what determines the outcome. We have written about the capital stack before. We will likely write about it again. What is happening across parts of…
When bonds stalled, Garrington Private Credit compounded. Last week, we discussed how understanding the source of returns may matter more than the asset class label itself. But correlation and diversification are not theoretical concepts. They are experienced in real time during periods of market stress. For many investors, traditional fixed income has historically played a stabilizing…
What Actually Drives Returns? Correlation gets a lot of attention in investing. What drives that correlation matters just as much. Many asset classes ultimately respond to the same underlying forces — interest rates, market sentiment, liquidity conditions, broad economic cycles. When those pressures emerge, positions that once looked diversified can start moving together. That is why understanding…
