Reported 11 months ago
Private credit has expanded to over $2.1 trillion in assets according to the IMF, raising concerns among investors about the sector's future growth. Yahoo Finance host Julie Hyman explains the concept of private credit and its implications for investors. The asset class has seen significant growth and returns, attracting more attention and funding in recent years. Private credit involves investment funds lending to corporate borrowers, similar to private equity but focusing on lending rather than acquiring company ownership. While the sector continues to grow, there are potential risks such as valuation uncertainties, lack of credit quality transparency, and difficulties in assessing systemic risks.
Source: YAHOO