U.S. direct lending loans shrugged off a difficult start to the quarter and followed broader capital markets higher after the administration’s decision to pause the “Liberation Day” tariffs. The announcement led to a rebound in markets, lifting the average fair value of direct lending loans, pushing returns higher.
Analysis & Data, LSTA publications on the private corporate credit market
The U.S. direct lending market posted softening sequential results in the first quarter of 2025, highlighting the asset class’s resilience but not fully capturing the uncertainty that roiled markets in early April, according to two leading market benchmarks. Total return in the first quarter softened to 2.1%, according to the Cliffwater Direct Lending Index (CDLI),...
Analysis & Data, LSTA publications on the private corporate credit market
