It’s called ‘private credit’ — and it could lead to big trouble on Wall Street

A trader works on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York on March 18, 2026. ANGELA WEISS/AFP via Getty Images/AFP

ANGELA WEISS/AFP via Getty Images/AFP

The risky lending business known as “private credit” is causing some very public problems for banks and investors — with implications that go far beyond Wall Street.

“Private credit” refers to an opaque but fast-growing corner of the financial world: When private-equity firms and other companies that aren’t banks lend money to businesses, such as software companies

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