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Loan Note: Banks pour cash into private credit while also growing market share

Banks are providing private credit managers with more capital as the relationship between the two become more collegiate. Banks might also start to increase their market share again, according to one PDI Germany Forum speaker.

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They said it

“A bank in the US today – a big bank – is levered roughly 10 to one, 10 times as much assets for their equity. These private credit vehicles are typically levered one to one, so it’s much less leverage”

Federal Reserve Bank of Minneapolis president, Neel Kashkari, said at the Monetary and Banking Conference 2024.

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