Private Credit Is Crowded But No Systemic Risk, SocGen CEO Says

Societe Generale SA Chief Executive Officer Slawomir Krupa said the boom in private credit can lead to bad choices, but those won’t spiral into a threat for the wider industry.

The asset class’s success is attracting “more and more players,” Krupa told reporters Thursday, and “sometimes the last one to arrive” in an already crowded market “is not the one who makes the smartest decisions.”

Krupa also said he didn’t think “there is currently a systemic risk” in private credit. That’s because the risk inherent in the deals is “in the hands” of investors outside the banking industry.

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