Wall Street's Favorite New Buzzword: Private Credit

The video discusses the rapid growth of a previously niche asset class, now attracting traditional asset managers and hedge funds. The market, currently valued at 1.5 trillion, is expected to grow to 2.3 trillion by 2027, though at a slower pace due to fundraising challenges. Key risks include rising interest rates and increasing default rates, particularly in the private credit sector.

What are the risks associated with rising interest rates for borrowers?

What trend is observed regarding default rates in the context of the asset class?