Regulators know only too well that the growth in private lending has made it harder to identify risks in the system. For investors, rising covenant defaults and PIK usage continues to tick upwards; albeit mirrored by decent earnings growth. Fortunately, blow-ups like those seen in the US are few and far between - but have a habit of rattling markets and prompt probing questions from investors. Are investors right to be concerned about signs of stress in private credit?
