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// definition

Private credit

Direct lending by non-bank managers

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Private credit & markets

Short definition

Loans extended directly by non-bank managers to companies, with no listing and no active secondary market. An illiquid, lightly regulated, model-marked market of about $1.3 trillion in the United States.

risk atlas

Knowledge map

Intuition

Private credit replaces a continuous market price with model marks, redemption windows and often delayed information.

Formula

visible risk ≈ observed defaults + NAV discount + capped redemptions + fund leverage

Why it matters now

Rising defaults, capped semi-liquid redemptions and the gap between listed BDCs and private funds make liquidity as important as the advertised yield.

Related analyses

Related guides

Related datasets

Signals using it

  • MethodologyDebt, interest burden, current stress and structural vulnerability.
  • Risk DiffRecent change in risk and source freshness.
  • Black Box RecorderHashed frames to replay a point-in-time state.

Primary sources