Regulators look out for trouble

In both the US and Europe, regulators are taking a keen interest in private debt, write McDermott Will & Emery's Aymen Mahmoud, Riley Orloff and Matthias Weissinger. But do regulators have a distorted view of the asset class’s risks?

Aymen Mahmoud
Aymen Mahmoud

It’s no secret that direct lending markets are growing at a remarkable pace. As investment managers look to provide their investors with stable risk-adjusted returns, the flight of capital to private credit has taken it to upwards of $2 trillion and the product offering has evolved into the most sophisticated general lending product in the leveraged finance markets.

Share this