Buttonwood’s hot take on the early demise of the private credit boom is more like hot air. Private credit terms are invaluable to smaller firms or companies in distress, which the banks cannot service well. Aside from just offering more flexible interest payments, they can make more creative investments like leasing or mezzanine debt that can convert to equity.
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Letter: The Economist's Buttonwood should…
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Buttonwood’s hot take on the early demise of the private credit boom is more like hot air. Private credit terms are invaluable to smaller firms or companies in distress, which the banks cannot service well. Aside from just offering more flexible interest payments, they can make more creative investments like leasing or mezzanine debt that can convert to equity.