Direct lending returns have historically been driven by consistent double-digit income returns, with a range between 10% and 12%. The slow decline in credit spreads within the CDLI over the last several years is a product of overall credit spread compression, but also the gradual increase in the proportion of lower-yielding senior loans in the CDLI and a decline in second lien and subordinated loans.
Download Direct Lending – Performance Analysis Insight
Read more on Direct Lending.
