BlackRock Says Private Credit Shift From Banks Is Here to Stay
- Firm says stiffer competition will lead to lower bank profits
- Study predicts strong private-credit growth in coming years
BlackRock headquarters in New York.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
BlackRock Inc. said “tectonic shifts” are under way in US financial markets that will result in private credit funds financing more businesses while some banks struggle to compete.
The asset manager concluded that the movement of cash to money-market funds from bank accounts will diminish lenders’ ability to finance small and mid-size firms, BlackRock Investment Institute said in a paper set for publication on Tuesday.