Navigating private credit – how it compares with T-bills and publicly issued bonds

[SINGAPORE] Private credit is rapidly gaining traction among retail investors as regulators around the world are giving these individuals more access to private markets in general.

Private credit refers to a type of debt negotiated between non-bank lenders and companies that are often below investment grade and unlisted.

The asset class flourished after the global financial crisis, when banks cut lending amid fears that they would not be able to recover the debt. Since 2009, the global private-credit market has grown more than 10 times, with assets under management exceeding US$3 trillion as at end-2024.