Recent weeks have seen increased attention on the private credit markets following the defaults of Tricolor and First Brands. While these events are idiosyncratic, they have raised broader concerns about weakening lending standards. In this article, we discuss their market impact, credit reaction, and our positioning in this environment.

Markets ended the third quarter with renewed optimism despite political and economic uncertainty. The plethora of new issuance during the end of Q3 offered fertile ground for generating alpha. Looking ahead, opportunities persist beneath the surface along with a few interesting emerging themes.

As we head into the fourth quarter of 2025, we have compiled five charts that we think highlight some of the key themes and opportunities we see in the current market environment.