Private Credit’s Retail Risk Draws Scrutiny From Global Watchdog

The world’s top financial stability watchdog is examining the potential risks posed by an influx of retail investors into the $1.8 trillion private credit market, according to a person with knowledge of the matter.

The Financial Stability Board, which convenes central bank governors and finance ministries from the world’s largest economies, is overseeing the assessment through a subcommittee of members that monitors emerging risks to the financial system, the person said, asking not to be identified as the work is private.