Non-bank lenders may be fair-weather friends
Research shows they don’t just retreat in a crisis — they run for the exit
Related reading
We must be mindful of the risks of private credit
The sector remains untested in a severe or prolonged economic downturn
Beware the three Ls: leverage, liquidity and lunacy
In the long run bubbles always deflate, often when least expected
Private credit’s stale pricing problem
More frequent asset valuations can boost market resilience and investor confidence
Short rates have overshot
Plus the social media lawsuits
Interest rates take fright
The market’s calm in the face of war is beginning to crack
Private credit won’t spark the next financial crisis
A lower leverage ratio and limited links to banks mean that the sector is unlikely to pose a systemic threat