
Private Credit & Systemic Risk
Moody's Talks - Inside Economics
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The Rise of Private Credit
This chapter explores the growth and significance of the private credit sector as a vital non-bank lending option for small and medium-sized enterprises, valued at an estimated $1.5 to $2 trillion in the US. It examines the evolution of private credit post-financial crisis, its relationship with private equity and hedge funds, and the tailored solutions it offers to riskier borrowers. The discussion highlights the sector's advantages, particularly in avoiding maturity mismatch risks prevalent in traditional banking.
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