Chart Of The Week: The $1.3T Private Credit Market Is Starting To Crack

Private credit has been one of the fastest-growing corners of finance over the past decade plus.

It surged after the 2008 financial crisis, when banks pulled back from middle-market lending and left a gap for private lenders to fill.

Today the U.S. private credit market is sitting at about $1.3 trillion.

Private credit was attractive because it offered higher yields and more control. And for a while, it even looked like a safer way to generate income.

But the foundation of private credit is starting to look a lot less stable today. Because pressure is building inside the very loans that made this market so attractive in the first place.

This week’s chart shows exactly where it’s happening.

Cracks In the Foundation

Take a look at this chart.