Citigroup has warned that inexperienced investors in private credit could exacerbate market stress if they are forced to sell loans during a downturn, adding to growing debate over risks in the rapidly expanding $1.8tn asset class, according to a report by Bloomberg.
Mickey Bhatia, Citi’s head of spread products, said the concern centres on newer entrants to the market who may lack the capability or willingness to manage distressed positions through a cycle. Instead, he suggested, they could opt...
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