COVID-19 brought stress to the credit markets in early 2020 with credit portfolios suffering material drawdowns across most segments. Pressure on borrowers has risen, access to finance has dwindled and defaults have increased. Amid this challenging backdrop, direct lending appears as a resilient asset class. We look more closely at direct lending, highlight how it has weathered the COVID-19 period, and explore why it is worth considering as a strategic allocation in a portfolio.
