David Larsen, Managing Director in Duff & Phelps Alternative Asset Advisory practice, was recently quoted in a Private Debt Investor article titled, “Unique Market Shock Poses Significant Challenges in Valuation.”
David commented: “The current market turmoil affects fair value in two fundamental ways: market participants translate increased uncertainty into additional risk, and the risk associated with payment of interest and principal increases when the credit quality of a borrower decreases.”
“When faced with these risks, market participants require additional rates of return, which increases the yield on a private debt investment and decreases the value of the investment,” he added.
Subscribers of Private Debt Investor can read the full story here.
