Glossary Category: D

Offer by an issuer to exchange debt at a discount, often to avoid default

Debt trading at a discount to par on the secondary market, due to multiple reasons including borrower/issuer challenging or declining performance, adverse news / events

Private loans made directly to borrowers by certain specialized institutional lenders (eg Private Credit funds). Private Credit emerged in the 1990s, however the market for

Probability that a borrower or an issuer will fail to make payments under their debt obligations.

The amount of capital that has been committed to a private capital fund minus the amount that has been called by the GP for investment.