Carlyle Sees ‘Deluge of Opportunities’ in Private Credit From Basel Endgame
- Firm is buying loans like healthcare debt and student loans
- Company can securitize debt and generate high returns
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Banks selling loans to cope with US oversight proposals are creating a opportunity in the private credit market that can generate outsized returns, according to Mark Jenkins, head of global credit at Carlyle Group Inc.
The international overhaul of regulations known as the Basel III endgame may trigger big increases in bank capital requirements. The new regime isn’t final, but some lenders are getting ahead of the game by selling investment-grade loans to reduce potential capital charges.