Report highlights how direct lenders are forging increasingly close ties to more tightly regulated financial groups Bank lending to the $1.6tn private credit industry may pose systemic risks to the US financial system during an economic downturn, the Federal Reserve’s Boston branch warned on Wednesday. Boston Fed economists said in a paper that US lenders...Read More

Industry may become a ‘locus of contagion’ during market upheaval, report from US officials and bankers says Private credit is now so intertwined with big banks and insurers that it could become a “locus of contagion” in the next financial crisis, a group of economists, bankers and US officials has warned. Researchers from Moody’s Analytics,...Read More