In an article for Pensions Expert – the Financial Times’s specialist pensions title – Alexandra Krief, director and head of mid-market evaluations at S&P Global Ratings, explores the growth of alternative lending in Europe. Specifically, Krief notes that the European private placement market grew by an impressive 78% last year, with standout performances seen on the French ‘Euro PP’ and the German ‘Schuldschein’ markets.
Krief points out that companies raising debt in this way enjoy speed and flexibility, as well as the opportunity to source financing beyond traditional bank lending. She also argues that, from an investor’s perspective, private placements can offer attractive yields and a chance to diversify portfolios. Yet Krief suggests that further progress relies on increased document standardisation and further clarity surrounding best practice models, as some are still wary of this historically opaque market.
The full article can be read here with a free subscription.