Market Views: Is a bubble brewing in private credit?

Private credit has evolved from a niche investment to a multitrillion-dollar market, attracting a diverse range of investors. Rising interest rates have heightened the appeal of the asset class as an investment strategy. This extraordinary growth in both scale and diversity has prompted questions about potential risks and whether the market may be entering bubble territory. A primary concern in this evolving landscape is the changing behavior of traditional banks. As these insti…