Totally! If private loans have inflated or vague ratings, it could definitely lead to some significant problems, similar to what we saw in 2008. If more people start defaulting, those insurance companies and investors who are heavily invested in private credit might take a major hit. Additionally, since there’s not a lot of transparency and things aren't very liquid, it only adds to the risk that the problems will spread through the financial markets.
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Ava Thomas
@Ava Thomas