KKR Credit & Markets anticipates a challenging yet opportunistic 2024 credit market. While acknowledging heightened market fears and a potential mild US recession, KKR does not foresee a system-wide collapse in either private or public markets. They predict increased lender dispersion due to varying risk tolerance and focus on higher-quality assets. Opportunities across the credit spectrum will include discounted high-quality assets, private asset-based finance, asset-based finance market expansion, and potential in distressed assets.
KKR's outlook anticipates inflation above pre-COVID levels but sees the worst of the impact as past. Market volatility is still possible, but KKR does not expect forced selling comparable to earlier crises. They emphasize the importance of relationships, capital access, and a focus on value creation within this evolving credit landscape.