Private Credit Gets ‘Yellow Alert,’ While Swedish Defense Scores Green Light

Welcome to the Wall Street Week newsletter, bringing you stories of capitalism about things you need to know, but even more things you need to think about. I’m David Westin, and this week we told the stories of the risks and rewards of private credit and of the surprising leadership of Sweden in rearming Europe. If you’re not yet a subscriber, sign up here for this newsletter.

Every day this week there was another headline about private credit. Lloyd Blankfein said private credit firms have done “very, very well over time, built big businesses.” But as with any investment, private credit has some risks. Former Federal Reserve Board Member Dan Tarullo of Harvard acknowledges the role that private credit plays in the banking system while urging caution.