Asset-Based Credit in 2025:
Powering Ahead

In 2025, we expect Asset-Based Credit (ABC) markets to power ahead, supported by the resilience of the US consumer and the continued strength of the US economy. Strong fundamentals should enable attractive risk-adjusted returns for many parts of the Asset-Based Credit complex at a moment of historically tight spreads across corporate credit markets. This comes at a time of growing recognition of the importance of ABC as a valuable diversifier for existing credit exposures and a permanent pillar of the broader private credit ecosystem.