The Last Mile: Financial Vulnerabilities and Risks, Chapter 2: The Rise and Risks of Private Credit study notes cover the following learning objectives:
Describe characteristics of private credit, including its typical investors and borrowers, and compare private credit to other types of loans and fixed-income instruments.
Explain the return profile and growth profile of the private credit asset class, and compare the historical returns of private credit to those of other asset classes.
Describe and assess the risks and vulnerabilities related to private credit, and explain how private credit can pose risks to financial stability.
Assess potential policy recommendations that could help mitigate the risks associated with private credit.