The Continued Rise of Private Credit in 2025 

Banking experts highlighted that the growing role of private credit in the financial system may lead to uncertain outcomes in the event of macroeconomic instability. According to KBRA, default rates for private credit loans are expected to jump from 1.9 percent to 3 percent in 2025. One commentator noted that as alternative asset managers face pressures to grow their assets under management, their risks will increase and will be disproportionately held by fund investors.

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