Bank of England tests private credit industry, what’s next?

After weeks of concerning news about private credit, the Bank of England (BoE) has announced that it will test the sector's resilience, with the cooperation of the biggest US private credit groups: Blackstone, Apollo, and KKR.

According to the Financial Times, the BoE will examine leveraged loans, high-yield bonds, asset-backed finance, and private equity borrowing, as well as how the system would weather a crisis and the potential impacts on the wider economy.

Insurers have been particularly interested in the field in recent years, with many investing heavily. This, therefore, raises the question of whether they will be burned if the market fails the test. 

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