UBS: Private Credit Does Not Constitute Systemic Risk

Dario Messi of Swiss Posheng stated in a report that although private credit has experienced significant growth, it does not pose a systemic risk. The fixed income head said that the connection between private credit and the banking system remains manageable, and regulators are closely monitoring potential interconnections and vulnerabilities. He said, “So far, as far as we know, off-balance-sheet vulnerabilities seem relatively manageable, thanks to the increasing vigilance of the regulatory environment regarding such potential risks.” (Sina Finance)