Private Credit’s Secrecy Causes Watchdogs to Fret: Credit Weekly
- Regulators want more transparency into private credit
- Liquidity and contagion risk are major concerns for watchdogs
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Risky private credit lending is vulnerable to higher interest rates and debt crunches, according to watchdogs across the globe that are seeking more transparency from the industry.
The International Monetary Fund weighed in on the risks to financial stability from the fast-growing $1.5 trillion asset class, saying transparency needs to improve and that more data needs to be collected, including on cross-border exposures.