Investor Presentaiton
Growth in Private Credit Leads to Mounting Risks
U.S. private credit market now rivals that of the
institutional loan market
>> Private credit totals ~$1 trillion and is estimated to grow
to $1.5 trillion over the next 3 - 5 years 1
Non-traditional lenders taking market share from banks
>> Banks' share in corporate lending has decreased since
2008 as:
>> Regulation increased and
>> The number and scale of private-sponsored
enterprises has risen
$ Billions
Bank Loans to SMBs 2 Continue to Grow, but
Banks' Share of the Market Declines¹
Domestic Commercial & Industrial Loans <$1 Million
Share of Total Domestic Commercial & Industrial Loans
$400
35%
$350
30%
$300
25%
$250
20%
$200
15%
$150
10%
» Credit risk heightened by reduced transparency, rising
leverage and lender concentrations
$100
5%
$50
» Systemic risk created from disintermediation away from
regulated financial institutions
$0
¬0%
2010
2013
2016
2019
Credit and systemic concerns rising
1. Moody's Investors Service; Financial Stability - U.S.: As private credit continues to grow, risks are getting swept into grey zone, October 25, 2021.
2. SMBs: Small and mid-size businesses.
Moody's | Better decisions
4Q & FY 2021 Investor Presentation 25View entire presentation