There is just too much LIQUIDITY at present in markets.
Talked to a friend who is head of global private debt at a pension fund based out of NY.
1. Bad year for his unit because lenders are undercutting on deals.
2. Easy collateral .. lower rates, flexible tenures and tighter spreads .. all are available to borrowers.
3. This is allowing old funds to be rolled into new funds quite easily.
According to him .. too much liquidity mispricing the assets and there is pressure to deploy funds.