The private credit market has surged from $875 billion to over $1 trillion due to the high interest environment and increased demand for corporate financing.
Business Development Companies (BDCs) are stepping in to fill the financing gap left by banks withdrawing from riskier corporate lending practices, contributing significantly to market growth.
In a risk-averse lending environment created by Basel 3 accords and inflation-driven interest hikes, private debt and credit markets have emerged as crucial players for corporate finance.
With high capital reserve requirements making banks cautious, BDCs are providing essential capital, fulfilling the complex financing needs that traditional lenders are now avoiding.
#private-credit-market #business-development-companies #corporate-lending #high-interest-environment #financial-growth
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