Family offices defend private credit after IMF warning

Asian family offices have defended increased allocations to private credit, following IMF warnings of investor losses in the sector amid continued high US interest rates. The group’s latest Financial Stability Report warned that private credit’s rapid growth, and the accompanying pressure on managers to deploy capital, “may lead to a deterioration in pricing and nonpricing terms, including lower underwriting standards and weakened covenants, raising the risk of credit losses in th…