Private credit is sickly – Banks aren’t the cure


JPMorgan Chase CEO Jamie Dimon. — Bloomberg

PRIVATE credit firms are facing a major test, with mom-and-pop investors pulling their cash in fear of corporate defaults spiking and artificial intelligence (AI) destroying many of the software businesses that these funds have lent to.

After years of explosive growth, the industry has another challenge looming: A fightback from banks that’s being encouraged by US regulators.

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