Private credit bridges the lending gap as banks pull back

The credit market faces its first serious setback since the pandemic – and potentially the most severe since 2008. Default rates are rising and there could be hefty losses to come on loans to non-investment grade companies.

It is little wonder, therefore, that private credit is attracting so much attention. These lenders have been buying loan portfolios from struggling banks, raising more committed long-term capital from institutional investors and providing financing to borrowers from which traditional bank lenders have once again pulled back.