Churchill’s Schwimmer Sees Private Credit Yields High for Longer

Interest rates will stay higher for longer, providing a yield boost to private debt investors, according to Randy Schwimmer, vice chairman at Churchill Asset Management.

“We’re going to be in a high-rate regime” as the US economy stays strong and the Federal Reserve remains on inflation watch, Schwimmer said in the latest Bloomberg Intelligence Credit Edge podcast. “Yields on private credit will will stay higher for longer.”

Middle-market loans, those that typically fall in a $100 million to $500 million size range and are sometimes as much as $1 billion, are rewarding investors with yields that can reach ...