Key Takeaways
- • Commentary by David Wighton in Financial News London argues that private credit fears are subsiding, but regulators are still right to increase scrutiny of the sector.
- • The column states that watchdogs are correct to warn about artificial intelligence, scale, opacity, illiquidity and interconnectivity across private credit markets.
- • The piece is an opinion column, and the available primary text does not include specific deal values, fund figures or regulatory actions.
Summary
A commentary published by Financial News London on 26 October 2026 by David Wighton examines the state of private credit and the regulatory response to it. According to the column, concerns about the asset class have eased, but the author contends that regulators are still justified in boosting their scrutiny of the sector.
The piece argues that watchdogs are correct to warn about several structural risks. These include the impact of artificial intelligence, the sheer scale of private credit lending, opacity in how exposures and valuations are reported, illiquidity in underlying loans and fund structures, and interconnectivity between private credit managers, banks and other financial institutions.
The available text is a commentary rather than a news report and does not include specific figures on fund sizes, default rates, or named regulatory measures. Institutional allocators and managers following the sector should treat the column as a view on the regulatory direction rather than as a source of new market data.
The piece argues that watchdogs are correct to warn about several structural risks. These include the impact of artificial intelligence, the sheer scale of private credit lending, opacity in how exposures and valuations are reported, illiquidity in underlying loans and fund structures, and interconnectivity between private credit managers, banks and other financial institutions.
The available text is a commentary rather than a news report and does not include specific figures on fund sizes, default rates, or named regulatory measures. Institutional allocators and managers following the sector should treat the column as a view on the regulatory direction rather than as a source of new market data.
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