Fitch Ratings warns about systemic shock to Private Credit!

Here we go again! Another warning about Private Credit, this time from Fitch Ratings. According to their resent research, a shock to the financial system that impacts the Private Credit sector could create a large systemic problem for a wide range of investors and lenders (i.e. Hedge Funds, Private Equity Funds, and Banks). In this episode we review two articles from Fitch Ratings titled “Private Credit’s growing complexity untested through market cycles” and “Systemic shock could expose Private Credit’s broad reach, growing risk.” Links to both articles are included below.

Link: Private Credit’s Growing Complexity Untested Through Market Cycles

Link: Systemic Shock Could Expose Private Credit’s Broad Reach, Growing Risk