Exploring the growth and potential risks of the private credit industry post-2008 crisis amidst concerns over rising interest rates. The chapter underscores the significance of the upcoming 18 to 24 months in evaluating the responsible management of debt in the market.
Private credit funds are having a moment. Once under-the-radar lenders that did deals with riskier clients, the firms have gotten a lot more popular as interest rates have climbed. But private credit funds are also under a lot less oversight than traditional lenders, allowing little transparency into the way they value their loans. And all this new-found attention is starting to come with heightened scrutiny.
On today’s Big Take podcast, reporter Silas Brown shares what we know – and what we don’t – about how the world of private credit operates, and what new regulatory interest could mean for the $1.7 trillion dollars of assets these funds are managing.
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