Key Takeaways
- • The Alternative Credit Council, which represents private credit fund managers, says public sentiment about private credit has become "divorced from the market-wide reality," according to a report cited by Bloomberg.
- • Report authors Jiří Król and Cindy Ma point to a 17% year-on-year increase in private credit assets under management, which reached $4.1 trillion.
- • The authors argue that periods of market stress are a normal test for any healthy market and note that some credit metrics continue to improve.
Summary
The Alternative Credit Council, an industry body representing private credit fund managers, has argued that negative public sentiment toward the asset class has grown detached from underlying market conditions, according to a report covered by Bloomberg.
In the report, authors Jiří Król and Cindy Ma wrote that any healthy market is expected to undergo periods of testing. Rather than pointing to investor concerns as evidence of weakness, they cited growth in the sector, including a 17% year-on-year increase in assets under management to $4.1 trillion.
The authors also said some credit metrics are continuing to improve, which they presented as evidence that fundamentals remain sound despite market fears. The source material available for this story is limited, and the full report's additional findings and specific data on defaults, returns, or individual risk concerns were not available for this summary.
In the report, authors Jiří Król and Cindy Ma wrote that any healthy market is expected to undergo periods of testing. Rather than pointing to investor concerns as evidence of weakness, they cited growth in the sector, including a 17% year-on-year increase in assets under management to $4.1 trillion.
The authors also said some credit metrics are continuing to improve, which they presented as evidence that fundamentals remain sound despite market fears. The source material available for this story is limited, and the full report's additional findings and specific data on defaults, returns, or individual risk concerns were not available for this summary.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.