Introduction to risk assessment of private credit funds. PDT time zone
Are Private Credit Funds Risky for Your Portfolio?
A special event webinar dedicated to the ABC Quant's risk valuation frameworks of private credit funds. Private credit, also referred to as direct lending, involves non-bank financial institutions, such as private equity firms and alternative asset managers, providing loans to small and mid-sized businesses. These businesses are often highly leveraged and typically unable to access corporate bond markets for borrowing. Private credit offers an alternative financing option to traditional bank loans. While private credit constitutes a relatively small portion of overall business financing, its rapid growth has raised concerns among banks regarding competition and among regulators regarding potential risks to financial stability. Join our exclusive webinar to delve into the challenges of assessing private credit risk and discover ABC Quant’s innovative risk models and proprietary frameworks tailored for evaluating private credit funds.
Introduction to Private Credit
- Private credit vs. traditional bank lending and private equity.
- The structure of private credit.
- Evolution of private credit funds.
- Main investor categories in private credit instruments.
- Hedge fund databases: coverage of private credit funds.
Challenges of Private Credit Risk Assessment
- Credit risk assessment problems of non-rated instruments.
- Can we use conventional credit risk valuation methods?
- Stress testing of private credit: why bank stress testing frameworks fail.
Stress Testing of Private Credit Funds in Risk Shell
- Macroeconomic Scenario Screening for private credit instruments.
- Multi-factor models and stress testing.
- Extreme event and correlation stressing.
Integrating Stress Testing with Portfolio Optimization
- Why combining stress testing and optimization in a single framework.
- Basics of factor-based stress testing.
- Stress constraints in optimization models.
Potential Audience
Institutional portfolio managers, pension funds, hedge FoF and multi-asset portfolio managers, risk managers, CIOs, advanced family offices. endowments.
