Assets don’t fail in isolation. Portfolios do. Private credit is not a monolith. It includes senior and junior lending, sponsor-backed and direct corporate loans, asset-backed finance, special situations and secondaries. Risk varies widely depending on underwriting discipline, sector exposure, leverage, structure, geography and, most importantly, manager and investor behaviour.
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Private credit isn’t the problem — concentration is
Critics warn that it is opaque, illiquid and vulnerable to a sudden loss of confidence.
