What does bank retrenchment mean for private credit investors?

While banks remain the principal providers of debt financing, alternative lenders have made meaningful advances over the last decade, particularly in infrastructure.

Meanwhile, monetary tightening and the market stresses of 2023 saw the return of bank retrenchment of a scale not seen since the global financial crisis.

In this note, Private Credit Research Manager Lushan Sun outlines her view that global economic uncertainty could prolong this situation for some time – with the potential outcome of private credit growing significantly as a proportion of the broader capital markets.