Key Takeaways
- • Private credit lending volume in the US fell 14% in the first quarter of 2026, according to Bloomberg's analysis of lending data.
- • Bank lending to companies rose 12.7% over the same period, the fastest growth since 2022.
- • Rising funding costs, driven by fears of loan losses, are reported to be pushing some private credit firms out of deals.
- • Anecdotal reports from lenders support the data, indicating a shift in competitive dynamics between banks and private lenders.
Summary
Private credit firms saw their lending volume shrink 14% in the first quarter of 2026, while US banks recorded a 12.7% increase in lending to companies, the fastest pace of growth since 2022, according to Bloomberg. The divergence points to a notable reversal for a segment that has grown rapidly as an alternative to bank financing for American businesses.
Bloomberg reports that the data, together with anecdotal accounts from lenders, suggests some private credit firms are losing business as fears of loan losses have pushed their funding costs higher. Higher funding costs make it harder for non-bank lenders to compete on price and terms, which appears to be benefiting traditional banks with lower cost of capital.
The source article is brief and does not provide additional deal-level detail, named lenders, or specific figures beyond the first-quarter volume changes. Market participants will likely watch whether the trend persists into subsequent quarters and whether it reflects broader credit stress or a cyclical repricing within the private credit market.
Bloomberg reports that the data, together with anecdotal accounts from lenders, suggests some private credit firms are losing business as fears of loan losses have pushed their funding costs higher. Higher funding costs make it harder for non-bank lenders to compete on price and terms, which appears to be benefiting traditional banks with lower cost of capital.
The source article is brief and does not provide additional deal-level detail, named lenders, or specific figures beyond the first-quarter volume changes. Market participants will likely watch whether the trend persists into subsequent quarters and whether it reflects broader credit stress or a cyclical repricing within the private credit market.
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