Credit risk and Private credit: Difference between pages

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1.
''Debt - non-bank lending - private markets.''


The risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter.
Private credit is a loan to a business that is originated by a lender other than a bank or other traditional financial institution, and is not tradable in a public market.


In exchange-for-value settlement systems, the risk is generally defined to include both replacement cost risk and principal risk.
Private credit is also sometimes known as ''direct lending'', ''alternative lending'', ''non-bank lending'' or ''private debt''.




2.
Borrowers are typically small and medium sized enterprises, or smaller listed companies.


A weighted measure reflecting both the maximum possible amount of the credit loss (also known as the credit exposure), and the likelihood of such loss.
Lenders are typically regulated asset managers.
 
 
Purposes of private credit borrowings are wide ranging, including - among other purposes - asset backed finance and trade finance.




== See also ==
== See also ==
* [[Banker's payment]]
* [[Alternative Credit Council]] (ACC)
* [[CCR]]
* [[Asset backed finance]]
* [[Counterparty risk]]
* [[Asset manager]]
* [[Covenant]]
* [[Credit institution]]
* [[Credit default swap]]
* [[Credit risk]]
* [[Credit derivative]]
* [[Creditworthiness]]
* [[Credit exposure]]
* [[Debt]]
* [[Credit risk diversification]]
* [[Facility]]
* [[Capital risk]]
* [[Finance ]]
* [[ECL]]
* [[Listed company]]
* [[Event risk]]
* [[Loan]]
* [[Exchange-for-value system]]
* [[Packing credit]]
* [[MCT]]
* [[Private bond]]
* [[Operational risk]]
* [[Private equity]]
* [[Pre-settlement risk]]
* [[Regulation]]
* [[Price risk]]
* [[Small and Medium-sized Enterprises]] (SMEs}
* [[Prime bank]]
* [[Trade credit]]
* [[Principal risk]]
* [[Trade finance]]
* [[Putting a limit on losses]]
* [[Replacement cost risk]]
* [[Reputational risk]]
* [[Risk mitigation]]
* [[Sovereign risk]]
* [[Transaction risk]]




===Other links===
==Other resource==
[http://www.treasurers.org/node/4351 Credit risk, Will Spinney, ACT 2008]
*[https://acc.aima.org/about-acc/about-private-credit.html Alternative Credit Council (ACC) - Private credit explained]
*[https://acc.aima.org/research/borrower-s-guide-to-private-credit.html Borrower's guide to private credit - UK edition - Alternative Credit Council]]


[[Category:Manage_risks]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Risk_frameworks]]

Revision as of 04:03, 6 February 2024

Debt - non-bank lending - private markets.

Private credit is a loan to a business that is originated by a lender other than a bank or other traditional financial institution, and is not tradable in a public market.

Private credit is also sometimes known as direct lending, alternative lending, non-bank lending or private debt.


Borrowers are typically small and medium sized enterprises, or smaller listed companies.

Lenders are typically regulated asset managers.


Purposes of private credit borrowings are wide ranging, including - among other purposes - asset backed finance and trade finance.


See also


Other resource

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