Private Credit Low-Risk Reputation Dented by String of Restructurings
Supervisors are growing increasingly concerned about the risk of bubbles in private markets
Prosecco vineyards on the hills in the Veneto region, not far from the estate of the Zago family, the owners of Pro-Gest.
Photographer: NurPhoto/NurPhotoWelcome to The Brink. It’s Constantine Courcoulas in London and Luca Casiraghi in Milan, where we’ve been looking at some troubled situations emerging in private credit. We also have the latest on Thames Water, CRE CLOs and Hong Kong banks. Follow this link to subscribe. Send us feedback and tips at debtnews@bloomberg.net.
Private credit’s proponents have long argued that the sector is comparatively immune to the messy and drawn-out restructurings that have hampered investors in public markets. Close relationships with borrowers, stricter reporting rules and stronger covenants would limit the pain from any downturn, they said.