VPC - Fast-Growing $2 Trillion Private Credit Market Warrants Closer Watch
2024-04-09 08:45:00 ET
Summary
- The private credit market, in which specialized non-bank financial institutions such as investment funds lend to corporate borrowers, topped $2.1 trillion globally last year in assets and committed capital.
- In the past few years, it has grown rapidly as features such as, speed, flexibility, and attentiveness have proved valuable to borrowers.
- Institutional investors such as pension funds and insurance companies have eagerly invested in funds that, though illiquid, offered higher returns and less volatility.
By Charles Cohen, Advisor, Capital Markets Department; Caio Ferreira, Deputy Division Chief, Financial Supervision and Regulation Division of the Monetary and Capital Markets Department; Fabio Natalucci, Deputy Director, Monetary and Capital Markets Department; Nobuyasu Sugimoto, Deputy Division Chief of Financial Supervision and Regulation Division, Monetary & Capital Markets Department ...
Fast-Growing $2 Trillion Private Credit Market Warrants Closer Watch