However, not long after Trump set the Department of Labour and Securities and Exchange Commission to work “democratising” private credit, some significant red flags began to appear. Both corporate failures spawned allegations of fraud, causing observers to question whether more massive losses might hit private credit firms before long. However, multiple firms with sizeable private credit operations, including Apollo Global Management, Ares Management and Blackstone, have also seen their share prices decline in 2026, with private credit exposure one of multiple potential catalysts. Private credit in its present form originated in the aftermath of the 2008 financial crisis, as regulators tightened rules on bank lending. Importantly, that timeline means the private credit market has not yet been tested by a deep, prolonged economic downturn, raising concerns about what will happen when it does.

Source: The Star February 17, 2026 02:49 UTC