How Banks and Private Credit Became the Best of Frenemies
Two big forces in finance are teaming up.
Listen to Odd Lots on Apple Podcasts
Listen to Odd Lots on Spotify
Subscribe to the newsletter
Read the transcript
By now, everyone knows that private credit is a hot market. What's less known is that banks want in on it too. It's an odd state of affairs given that both these entities are in the business of making loans, so in theory they should be competing against each other. But instead we're seeing a bunch of deals, with more than a dozen big banks teaming up with private credit over the past year. So why are two seemingly natural competitors joining forces? And how much of an existential threat does private credit really pose for the banking industry? On this episode, we with speak with Huw van Steenis, vice-chair at Oliver Wyman and a long-time bank analyst at Morgan Stanley, about this new dynamic.