Reported about 24 hours ago
The private credit sector is showing signs of distress as over 40% of companies borrowing from private lenders reported negative cash flow by the end of 2024, a significant increase since 2021. With wider economic concerns, such as trade wars, and heightened risks of defaults, the future stability of banks with substantial exposure to private credit remains in question. Regulatory bodies are raising alarms regarding the potential spillover effects on traditional banking from vulnerabilities in the $1.6 trillion private credit industry.
Source: YAHOO