New era of private credit growth highlights its opaque nature, Moody’s says

The rapid growth of private credit lending beyond its traditional market highlights its opaque nature and potential concerns among regulators about its future risks to the U.S. economy, according to a new Moody’s Ratings report that cites regulators and industry bodies.

Banks in recent years have experienced a rise in competition from private credit lenders: non-bank firms offering non-publicly traded debt mainly to mid-sized corporate borrowers.

Source: REUTER