Template-Type: ReDIF-Paper 1.0
Author-Name: Iñaki Aldasoro
Author-X-Name-First: Iñaki
Author-X-Name-Last: Aldasoro
Author-Name: Sebastian Doerr
Author-X-Name-First: Sebastian
Author-X-Name-Last: Doerr
Author-Name: Karamfil Todorov
Author-X-Name-First: Karamfil
Author-X-Name-Last: Todorov
Title: Retail investors in private credit
Abstract: Private credit is poised for wider participation from retail investors through the rapid growth of business development companies and, more recently, private credit exchange-traded funds (ETFs). ETFs may introduce price signals that make the opaque private credit market more transparent, especially during downturns when discounts to net asset value could be large and persistent.The rise of retail investment vehicles may also give impetus to the creation of secondary markets for currently illiquid private loans, which could erode the benefits of private credit as an asset class.
Length: 8 pages
Creation-Date: 2025-07-09
File-URL: https://www.bis.org/publ/bisbull106.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/bisbull106.htm
File-Format: text/html
Number: 106
Handle: RePEc:bis:bisblt:106