(April 9): Financial Stability Board (FSB) chair Andrew Bailey warned stresses may be emerging in private credit after the shock to markets from the Iran war. Bailey, who is also Bank of England governor, said on Thursday that regulators needed to focus on the threat posed by private credit given its rapid rise and the febrile market responses to the conflict in the Middle East. Meanwhile, the rush of retail investors into private credit funds has slammed into reverse over fears about high-risk investments such as AI infrastructure, forcing some money managers to impose gates on redemptions. While the FSB chair on Thursday said regulators shouldn’t be surprised by the rapid growth of non-bank lending, Bailey warned of a “double whammy” scenario where volatile markets combined with a loss in confidence in the private credit world. “We’ve got volatile markets, that’s one thing,” he said.

Source: The Edge Markets April 09, 2026 09:53 UTC