Private debt is experiencing significant growth and attracting attention for its advantages. However, there are concerns that this growth may indicate a market bubble.

The lack of transparency surrounding private loans makes it difficult to assess the potential fallout if this bubble bursts. In the past, banks provided loans to corporate clients based on creditworthiness evaluations and retained these loans on their books. This approach ensured a predictable and efficient financial structure.

As the landscape changes, it is important for investors and regulators to closely examine the implications of the current private debt boom.