The Rise of Private Credit in a High-Rate Environment: Opportunity or Risk?
After more than a decade of historically low interest rates, the financial landscape has entered a new era—one where the cost of borrowing is higher, credit markets are tighter, and traditional sources of capital are pulling back. In this environment, private credit is emerging as a major force, offering attractive returns and flexible capital solutions. Projections suggest the industry could swell to $2.8 trillion by 2028. But with elevated yields also come new risks.