Global Regulators Warn of Risks in Rapid Growth of Private Credit Lending
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Risky private credit lending is vulnerable to higher interest rates and debt crunches, warn global watchdogs seeking more transparency.
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Private credit growth raises financial stability concerns for the IMF and Bank of England due to lagging interest rate effects.
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Watchdogs like the BOE and EU aim to limit contagion risks by proposing regulatory measures for private credit funds.
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Costs and lower returns rather than deal changes are the likely impact of increased private credit regulations.
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Global regulators struggle to understand private credit and see more oversight as the solution despite industry skepticism.