Private Credit Lenders Reap Benefits from National Security Spending

Private credit firms are investing in defense suppliers, including startups, due to increased military spending and action in Iran and neighboring states. These firms are exposed to the national security supply chain via tier-3 and tier-4 suppliers to large defense companies like Boeing and RTX. As the military replenishes munitions and develops new systems, private credit borrowers are expected to benefit from new orders and contracts.