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0 0 0 0 -5.06993981980973E-06 -5.06993981980973E-06 -0.00710805562737969 0.00866452715206266
Stock impact report

Why I Am Buying Private Credit [Yahoo! Finance]

First Citizens BancShares, Inc. - Class A (FCNCA) 
Company Research Source: Yahoo! Finance
and political commentary about private credit as an asset class has been exceptionally negative. Without commenting on any specific private credit firm by name, let me explain why I believe the private credit sector has been "oversold." Private credit, as an asset class, began to flourish following the 2008 financial crisis, when the traditional banking system was under tremendous stress. As the banks were forced to pull back from lending, new funds with longer-term capital stepped in to fill the breach. Private credit has been a counter-cyclical support for the financial system as a whole. Today, the traditional banking system seems generally safe and well-managed. However, private credit continues to have major structural advantages over traditional bank lending in terms of financial safety. If private credit did not exist, policymakers would want to invent it. First, traditional banks are levered with about $9 of debt for every dollar of equity, while private credit firms are Show less Read more
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