Reported 3 days ago
Moody's Ratings has issued a warning about the potential liquidity and asset quality risks arising from the influx of retail investors into the private credit sector. This shift, driven by asset managers creating funds to attract 'Main Street' investors, raises concerns over transparency and underwriting standards as the demand for high-quality assets grows amid a tight supply. Furthermore, the evolving regulatory landscape could exacerbate these vulnerabilities, particularly if rapid capital deployment leads to mismatches between liquidity and investor expectations.
Source: YAHOO