Thel Su Hlaing’s Post

Oh these risks have been increasing for some time now. "Remember the global financial crisis? Well, high-risk securities are back" "....16 years later, some experts believe new risks are emerging. And this time, they are linked to highly indebted companies backed by private equity firms, which are part of the growing but opaque portion of the financial system known as the shadow banking sector. Shadow banking refers to financial firms that face little to no regulation compared with traditional lenders, and includes businesses such as hedge funds, private credit and private equity funds.... ....“The private equity firms invest in companies that are almost failing, and in order to make these companies survive, they load them up with debt,” said Postel-Vinay. "These loans end up being repackaged as well, a little bit like the junk mortgages before the 2008 crisis.”..." https://lnkd.in/ewBCr5EA

Private credit's golden era isn't over: It's evolving!" Our CEO, Nelson Chu, shares insights on how platforms like Percent are shaping the private credit landscape, providing access to investors, diversification, and bringing transparency and standardization to this historically opaque market. With tech at the forefront, private credit’s best moments are still ahead. Read more on The Financial Revolutionist. https://lnkd.in/gUqKnWyX #PrivateCredit #Finance

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Should we be viewing the high-interest market through a glass-half-full lens? AllianceBernstein offers a fresh perspective on the potential upsides of the current high-interest private credit market. From their perspective, clarity on rates brings clarity on opportunities, especially as smaller banks recalibrate under new regulations. Check out their article on how strategic investments in private credit can yield significant returns in this high-rate environment here: https://lnkd.in/dyTxd6Rr #PrivateCredit #InterestRates #MarketInsights

With financial markets hitting all-time highs and the "alpha-dogs" left only with "Beta" on the table, maybe it is time to remember "Preservation of Capital" as a primary goal. Regulators have warned about a lack of transparency around private loan valuations and potential liquidity mismatches over the last year or so, as the market has ballooned to $1.7 trillion in size and interest rates have remained high.

Should we be viewing the high-interest market through a glass-half-full lens? AllianceBernstein offers a fresh perspective on the potential upsides of the current high-interest private credit market. From their perspective, clarity on rates brings clarity on opportunities, especially as smaller banks recalibrate under new regulations. Check out their article on how strategic investments in private credit can yield significant returns in this high-rate environment here: https://lnkd.in/epErUQik #PrivateCredit #InterestRates #MarketInsights

The battle between private credit investors and investment bank is intensifying, signaling that the market could be seeing compression.  In February, the Federal Reserve estimated that the size of the private credit asset class had grown larger than leveraged loans and the high-yield bond market. The market is worth $1.7 trillion, according to the Fed, and $800 million of this is direct lending. #DirectLending #HighYieldBonds #Leveragedloans #Privatecredit

As interest rates remain elevated, private credit has experienced a significant rise in interest, offering new opportunities and challenges for both investors and borrowers. Join us on Thursday, November 21 to explore the latest insights into private credit markets. In partnership with Adams Street Partners, our experts will discuss the near-term outlook for the asset class, including market dynamics and interest rates, as well as the long-term outlook and emerging strategies. Gain valuable insights on important private credit topics; • How private credit returns could change with potential interest rate shifts • The impact of the consolidation trend in private capital on private credit • New and emerging strategies within private credit markets Don't miss out - register now to save your spot: https://okt.to/xThfri #privatecredit #privatedebt #privatemarketinsights

"But, 16 years later, some experts believe new risks are emerging. And this time, they are linked to highly indebted companies backed by private equity firms, which are part of the growing but opaque portion of the financial system known as the shadow banking sector. Shadow banking refers to financial firms that face little to no regulation compared with traditional lenders, and includes businesses such as hedge funds, private credit and private equity funds." "And in June, the financial policy committee highlighted risks related to the private equity industry more broadly: “Vulnerabilities from high leverage, opacity around valuations, variable risk management practices and strong interconnections with riskier credit markets mean the sector has the potential to generate losses for banks and institutional investors.” And Govt wants pension money piling into this?