Banks Win More Business as Private Debt Shrinks

For many US companies, the hot new type of credit seems to be getting less attractive.

Private credit firms saw their lending volume shrink 14% in the first quarter, even as banks saw an eye-popping 12.7% increase in lending to companies, the fastest growth since 2022. The data, and anecdotal reports from lenders, suggest that some private credit firms are losing business as fears of loan losses have pushed funding costs higher.