Need to Know: Private credit

In this episode of Need to Know, our series covering the topics and issues influencing markets and the global conversation, David Havens, Senior Credit Analyst at Bloomberg Intelligence, defines private credit as an asset class and discusses what sets it apart. 

“We’ve seen a move in the private credit market funding where private lenders have increasingly been going to retail investors to solicit funds while continuing to go to institutional markets for funds as well,” he says. “There’s an $80 trillion pool of global private wealth funds that can be put to work, and private credit is substantially underweighted in that pool. The returns of private credit have been good, so we’re seeing private lenders attempting to democratize private credit for private wealth individuals.”