@akkartik i lend you money: nonbank credit

a bank lends you money: bank credit

increasingly nonbank investment funds are lending money, rather than buying equity or things that might convert to equity. “private credit” rather than “private equity”. 1/

@akkartik but what are the implications of that? less regulated “shadow banking” arrangements got a bad rep during GFC. what if private lenders lend badly? are their stakeholders prepared and capable of bearing the risk? might the “run” in some destabilizing way? /fin