Citi’s Fraser Wary of Insurance Giants’ Role in Private Credit

Citigroup Inc. Chief Executive Officer Jane Fraser warned that there’s a risk to the growing number of insurers piling funds into direct lending opportunities.

It’s one of many risks tied to the rise of the private credit industry that Fraser’s planning to discuss at an upcoming committee meeting of her company’s board, she said at an event hosted by the Basel Committee on Banking Supervision. She noted many players in the space are using insurance vehicles and the long-term capital they provide to invest in private debt.