Moody's warns of risks from increasing retail exposure to private credit

Moody's rating agency warns that retail investors face increasing risks in private credit investments. The report points out that since the pandemic, the credit market has gradually shifted towards private credit companies, with managed assets exceeding $20 trillion. Despite market volatility, alternative asset management companies continue to launch funds targeting retail investors, attracting them to invest in private credit. Moody's emphasizes that retail capital can expand the private market, but liquidity must be managed and transparency ensured for long-term success