CVC Credit Perspectives – Q1 2026

In our latest quarterly CVC Credit Perspectives report, the CVC Credit team reflects on the factors and trends that have shaped the liquid and private credit markets.

• Volatility, Dispersion and Opportunity: Despite geopolitical escalation in the Middle East and a sharp repricing in software amid AI-driven disruption concerns, credit markets proved resilient over the quarter, with spreads widening modestly but remaining tight relative to longer-term averages.
• Liquid Credit – Selectivity in Focus: Dispersion increased, particularly in U.S. leveraged loans, reinforcing the importance of disciplined underwriting and active portfolio management.
• European Private Credit Opportunity Endures: European direct lending continues to offer compelling relative value, supported by conservative underwriting, attractive spread premia over public markets and a building M&A and LBO pipeline.

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