Europe’s private credit funds resort to bank borrowing, raising concerns over systemic risks; Global Corporate Defaults hit highest level since the GFC

Sharing is Caring!

This trend raises alarm about the broader risks from interlinked dependencies.

LONDON, March 14 (Reuters) – Europe’s private credit funds are increasingly borrowing from banks to boost their performance, fuelling concerns about the wider risks posed by this interconnectedness.
A record 80% of new European private credit funds borrowed from banks via ‘subscription lines’ in 2023, funding that allows them to lend before tapping their investors for cash, MSCI Private Capital Solutions research shared with Reuters shows.

www.reuters.com/business/finance/private-credit-ties-banks-deepen-europe-default-risk-rises-2024-03-14/

Meanwhile…

See also  In corporate jobs, raises are budget-driven; switching companies is key for pay increases.

www.ft.com/content/f811649b-f66d-43aa-8a66-2412a4f0be50

Views: 131

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.