Private Credit and Hedge Funds Are Flooded With Loans as Banks Dump the Debt
- Canyon, Castlelake, Atalaya, Hyland among prospective buyers
- Consumer lenders see cash vanish as banks retreat, ABS slows
US regional banks and finance companies are increasingly selling off their consumer loans as funding them gets harder and more expensive, flooding private credit firms and hedge funds with requests to buy the debt at a discount.
Firms like Canyon Partners, Castlelake and Hyland Hill are seeing twice as many loans for sale now as at the end of last year, according to people with knowledge of the matter. The loans coming across their desks include car debt and personal loans, from consumer lenders including LendingPoint, Best Egg and Upstart Holdings Inc., as well as regional banks, the people said.