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BCA report “Unlocking Opportunities in Private Credit,” with yield spread insights and a return comparison chart.

The opportunity in Private Credit has grown very appealing, particularly relative to Private Equity. 

The rise in yields has increased the risk-adjusted return profile for the space. Spreads are set to provide further return cushion while benchmark interest rates and original issue discount (OIDs) have settled. 

Negotiating leverage and structuring upside are major tailwinds to subordinated debt particularly to Mezzanine Debt.