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Stock impact report

Private credit cracks open door for Wall Street banks' comeback: ‘The tug of war is just starting' [CNBC]

Electronic Arts Inc. (EA) 
Last electronic arts inc. earnings: 1/30 04:01 pm Check Earnings Report
US:NASDAQ Investor Relations: investor.ea.com
Company Research Source: CNBC
Wall Street, Manhattan, New York. Wall Street banks may finally be getting a long-awaited opening to claw back market share from private credit lenders. After a decade in which private credit lenders grew rapidly and took over a large share of financing for leveraged buyouts, signs of strain in that sector, along with easing bank rules, may now be shifting the balance. “This is an opportune time for banks to regain market share from private credit funds,” Moody's chief economist Mark Zandi told CNBC in an email. “Interest rates have declined and banking regulation has eased. Private credit lenders are also struggling with the fallout from their previously aggressive lending,” he highlighted. Private credit's rapid ascent was fueled in part by banks' retreat. Following the Federal Reserve's aggressive rate hikes and the 2023 banking crisis, lenders tightened underwriting and pulled back from riskier deals. Borrowers, particularly private equity firms, increasingly turned to Show less Read more
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