KBRA: Private credit a source of systemic strength

Direct lending takes pressure off banks, KBRA argues, aiding the financial system.

Private credit is a source of systemic strength, not weakness, and is exactly the kind of solution legislators and regulatory agencies had in mind following the global financial crisis, argues a new report by KBRA.

That view runs somewhat in conflict with many of the warnings from parties like the International Monetary Fund, the Fed and the Financial Stability Board.