BIS shows concern about private credit and funds that do not take risks
2024/7/8 16:34 JST (some excerpts)
Funds that use third party evaluations to report data to the SEC are 40% of the total
Approximately 78% of private credit transaction volume in the US is for PE holding companies
International financial regulators have expressed concern about the “fairly large” risks for investors in the private credit market. It became clear that approximately 40% of funds did not take risks themselves.
According to the annual economic report published by the Bank for International Settlements (BIS) last week, many management entities have avoided investing their own funds, and “incentive slippage” has occurred. There is a risk that industry players will prioritize their own interests over investor returns.
Funds that use third party evaluations to report data to the SEC are 40% of the total
Approximately 78% of private credit transaction volume in the US is for PE holding companies
International financial regulators have expressed concern about the “fairly large” risks for investors in the private credit market. It became clear that approximately 40% of funds did not take risks themselves.
According to the annual economic report published by the Bank for International Settlements (BIS) last week, many management entities have avoided investing their own funds, and “incentive slippage” has occurred. There is a risk that industry players will prioritize their own interests over investor returns.
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