With the US Securities and Exchange Commission’s recent attempts to introduce tighter private markets regulation apparently stymied, ratings agency Moody’s picked up on the rapid expansion of private debt into new areas of activity – hinting at the potential dangers of a journey into the unknown without accompanying regulatory guardrails.
Talk of strategic expansion may be overblown
Regulatory concerns focus on private debt’s perceived growth into new areas – but capital is flowing into an already well-trodden part of the market.