HSBC Holdings plc (NYSE:HSBC) is pulling back from some riskier private credit lending after a wave of high-profile bankruptcies intensified scrutiny of underwriting practices and loss assumptions.
The bank reportedly informed customers that certain higher-risk private credit loans will not be extended. The decision follows a run of prominent bankruptcies that have put deal vetting and loss assumptions under scrutiny.
An HSBC spokesperson told Reuters that the firm’s offerings cover “every stage of the private credit market… with robust central oversight.”
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