Market Views

One-on-One with Dwight Scott: The Loan Market in an Era of Rising Rates 

Dwight Scott, Global Head of Credit, discusses the growth in the leveraged loan and private credit market as interest rates begin reversing a nearly 35-year decline.

The evolution of the institutional loan market over the last 20 years has been extraordinary. The market has grown to nearly $3 trillion in size, made up of both liquid loans—traded loans that are originated by banks and placed with a broad group of investors—and private credit or direct lending—loans that are originated and held by private investors, and not generally traded.

This market now faces increased economic uncertainty as the Federal Reserve brings an end to a nearly 35-year bond bull market. Dwight Scott, Global Head of Blackstone’s credit business, believes that credit investors can benefit in this environment from loans that are floating-rate and senior-secured in nature. Watch the video to learn more.


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