The Business Times
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Private-credit fears are based on four myths

The growth of private credit in all forms has actually made our financial system more resilient and less concentrated

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    • The market for private credit is an estimated US$40 trillion. It is a big engine for the economy that fuels innovation, growth and the industrial renaissance.
    • The market for private credit is an estimated US$40 trillion. It is a big engine for the economy that fuels innovation, growth and the industrial renaissance. PHOTO: PIXABAY

    Marc Rowan

    Published Wed, Dec 3, 2025 · 07:15 PM

    IN CHARLES MacKay’s 1841 book Extraordinary Popular Delusions and the Madness of Crowds, he highlights how mass human behaviour can lead to irrationality: “They go mad in herds while they only recover their senses slowly, one by one.”

    That line feels apt today amid a wave of intense conjecture in the media and elsewhere about the risks embedded in so-called private credit.

    Private credit is privately negotiated loans and debt sold directly to long-term investors – an alternative to bank lending and publicly issued debt securities.

    Private creditFinancial marketsFinancial system

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