No one really knows, because private credit is so opaque. These guys don’t have to file 10-Ks or mark anything to market.
Is a Private-Credit Crisis Imminent? The rapid expansion of opaque and minimally regulated lending outside the traditional banking system over the past 15 years largely flew—as intended—under regulators’ radar. Now, however, signs of trouble in shadow banking are multiplying, with rising redemptions and notable fund failures stoking fears of a 2008-style crisis. Though we might …