Private Credit Could Amplify Shock in Next Crisis, Fitch Says

Private credit could be a “meaningful” transmission channel during the next crisis, amplifying a systemic shock to the financial system with negative repercussions for a broad range of investors, according to Fitch Ratings.

The fast-growing asset class has already exhibited “bubble-like” attributes including financial innovation, heightened competition, growing retail participation and rising leverage, the ratings firm said in a reportBloomberg Terminal Monday.