SLR forecasts lower private credit recoveries due to covenant erosion

As the private credit market enters a challenging new phase of the credit cycle marked by worsening loan performance, recoveries are likely to underperform expectations, with software hardest hit, says Michael Gross, co-founder of SLR Capital Partners. “I believe you’re going to see more and more defaults,” said Gross in an interview with LCD. “It likely won’t be anything systemic, but the one concern I have about defaults is that we’re going to need to throw the data people have used in the pas