The personal debt secondary market will see elevated deal move and decrease reductions this yr, a brand new survey has concluded.

Ely Place Companions’ newest Non-public Debt Secondary Market Survey discovered that the yr forward will see a “giant development in quantity” and amount of offers, because the sector matures.

Elevated competitors and a stabilising financial system might additionally result in increased pricing, the survey discovered.

Learn extra: Rising ‘bifurcation’ of high quality in center market personal credit score

Deal quantity is anticipated to extend by between 50 and 100 per cent this yr, with as much as $15bn (£11.96bn) of closed transactions predicted.

Ely Place Companions discovered that high-quality senior loans can be notably well-liked this yr, with LPs driving the overwhelming majority of those offers. Pensions funds are anticipated to be the most important sellers.

“Non-public debt secondary offers have been rising steadily in dimension and quantity over the previous twelve months,” stated Daniel Roddick, founder at Ely Place Companions.

“The institution of a devoted purchaser universe has given LPs confidence to carry giant portfolios to market.

“On the similar time, GPs are proactively benefiting from the market to speed up liquidity for his or her traders.”

Learn extra: Advisers look to reallocate from public fastened earnings to personal credit score

The survey requested plenty of specialist traders for his or her views on the state of the personal debt secondary market, with some respondents providing way more optimistic predictions.

One said that the personal debt market will develop to between $2tn and $2.5tn this yr, with one to 1.5 per cent of that altering arms within the secondary market.

One other investor predicted that deal move for 2024 could possibly be as excessive as $50bn.

Learn extra: Direct lending’s resilience “shall be examined”