Why regulators are zooming in on private credit
Private credit has grown fast. Regulators want to understand its risks.
Private credit in focus
Regulators are focusing on private credit's risks, connections and transparency.
Regulators are becoming more proactive
They are gathering data and assessing systemic links.
Systemic issues
Leverage, liquidity and links with banks and insurers.
Risk management
Valuation, credit monitoring and concentration.
How regulators are responding
More reporting requirements and stress testing.
Considerations for firms
Strengthen data, governance and transparency.
Conclusion
Firms that improve transparency now will be better placed as rules evolve.
Summary
Private credit scrutiny is increasing. Preparation is the best response.
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