The growth of riskier corporate borrowing in financial markets has gained the attention of regulators. Areas such as private credit and leveraged lending have drawn particular scrutiny, as some worry they might be the next sources of financial distress.
The debate around private markets, particularly private credit, is polarised into two camps. Its champions such as Apollo Global Management, Blackstone and Ares Management tout the tendency for private credit to be in illiquid assets and scrutinise lenders more closely than traditional investment banks.
