Private Credit Is Canary in the Coal Mine, Dutch Watchdog Warns

The Netherlands’ financial markets regulator warned of further turmoil in the $1.8 trillion private credit market after turmoil at some direct lenders.

There have been “incorrect assessments in lending,” Laura van Geest, who leads the Authority for the Financial Markets, said in an interview. “Now you actually see that less with traditional lenders, but more with private credit. So in that sense, bad credit is often a canary in the coal mine.”