Wall Street forms super teams to fight for $1.7 trillion private credit market

Published On Sep 29, 2024, 10:03 AM

Big banks and private equity firms are forming partnerships to tap into the $1.7 trillion private credit market. Citigroup and Apollo Global Management have announced a $25 billion fund for direct lending, marking a significant collaboration in finance. This trend of banks collaborating with private lenders is growing as more lending activities shift away from traditional banks, which are restricted due to regulations and risk management. Despite the benefits of these alliances, concerns about the growth of private credit and the associated risks remain prevalent among industry leaders.

Read full article

Stock Forecasts

CView C chart on TradingView

Positive

The partnership between Citigroup and Apollo is expected to enhance market opportunities for both parties and likely lead to increased revenue streams from private credit lending.

APOView APO chart on TradingView

Positive

Apollo Global Management, as a key player in the private credit space, stands to benefit significantly from these partnerships, contributing to its asset growth and market position.

BAMView BAM chart on TradingView

Positive

The private credit market is on track for substantial growth, suggesting an overall positive outlook for companies involved in private lending and financial services.

JPMView JPM chart on TradingView

Negative

JPMorgan's caution regarding private credit may dampen stock performance if risks materialize; however, their strategic investments could position them well in the long run.

Related News

JPMorgan touts 'soft landing' possibility after better-than-feared earnings

Oct 11, 2024, 11:03 AM

Profits at JPMorgan and Wells Fargo both fell from the year-ago period, but those declines were less than what analysts expected.

JPM
XLF

Big Banks Open Their Books for First Test After Rate Cuts

Oct 11, 2024, 8:11 AM

Profits fell at JPMorgan and Wells Fargo, but the lenders reported results that were largely better than had been expected, a sign that the economy remained solid.

JPM
WFC

Wall Street Profits Surge Despite Questions About the Economy

Oct 11, 2024, 7:48 AM

JPMorgan Chase, Wells Fargo and BlackRock reported strong quarterly results to kick off earnings season, but concerns linger about the strength of the consumer.

JPM
WFC
BLK