In the structured credit market, private credit (PC) lenders have become an increasingly critical funding source for corporate borrowers. After the global financial crisis (GFC), policymakers set out to de-risk the financial system by imposing stricter capital constraints and lending limits on banks. Nonbank financial institutions—including insurance companies, alternative asset managers, private equity firms, hedge funds, and other institutional investors, which generally face less regulatory pressure—stepped in to fill the funding gap with long-term capital. These lenders have been able to provide dynamic, tailored financing solutions to fit the needs of borrowers. As the PC market continues to grow and evolve, various types of rated structured credit vehicles have been used to raise capital to finance these loans.
Low-levered revolving credit facilities (RCF), often executed privately, have become a common tool in the rated structured credit universe. RCFs are a flexible source of…