Is a private-credit meltdown the next financial crisis? | The Economist

After the global financial crisis of 2007-09, non-bank lenders nabbed some of banking’s riskier activities, offering companies flexible financing and dazzling investors with the promise of double-digit returns. Private-credit lending to firms increased to $1.5trn. Now, though, there’s concern about private credit. The Economist’s top economics journalists explain what private credit actually is, what’s causing concern and analyse the systemic risk to the wider financial system. #economics #finance #privatecredit #markets 00:00 - What is private credit? 03:04 - What’s the appeal of private credit? 04:20 - Why is the concern about private credit? 07:19 - How does it compare to the 2008 financial crisis? Watch the full show: https://econ.st/4136B1L Sign up to the Insider newsletter: https://econ.st/4nOyzIb Subscribe to The Economist: https://www.economist.com/subscribe Download our app: https://www.economist.com/get-the-app Follow The Economist on Instagram: https://www.instagram.com/theeconomist/ Follow The Economist on Facebook: https://www.facebook.com/TheEconomist Follow The Economist on X: https://x.com/TheEconomist