Why Private Credit Is Facing Its Biggest Test Yet

It is been a tough few months for the $1.8% trillion private credit market. The market is going through its biggest crisis of confidence in its history. Private credit firms make loans directly to companies giving them a way to borrow outside of banks and bank-led channels.They use money predominantly from institutional investors, but recently from some wealthy retail investors too, and became major lenders to software companies, especially those backed by private equity firms, which by and large had seemed ...