Private Credit Strain Is a ‘Healthy Cleanup’, BofA’s Mensah Says

Signs of strain in parts of the private credit market present an opportunity for “a very good, healthy cleanup,” according to Bernard Mensah, who leads Bank of America Corp.’s international operations.

Several private credit funds have halted redemptions in recent weeks, heightening investor concerns over credit quality risks lurking within the $1.8 trillion market that’s grown rapidly in the past decade. Despite that, Bank of America is sticking to its plans to invest in the asset class.