The spectre of 2008 haunts banks’ push into private credit

cityam

Sep 02

HSBC has laid out bold ambitions to move into private credit. Britain’s biggest banks are trying to grab a slice of the rapidly expanding private credit market, but as they look to grow, memories of ...

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Britain’s biggest banks are trying to grab a slice of the rapidly expanding private credit market, but as they look to grow, memories of ...</p>\n\n<a href=\"https://www.cityam.com/the-spectre-of-2008-haunts-the-banks-private-credit-boom/\">Source Link</a>\n\n</div>\n","source":"cityam_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The spectre of 2008 haunts banks’ push into private credit</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe spectre of 2008 haunts banks’ push into private credit\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-09-02 13:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cityam.com/the-spectre-of-2008-haunts-the-banks-private-credit-boom/><strong>cityam</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>HSBC has laid out bold ambitions to move into private credit. Britain’s biggest banks are trying to grab a slice of the rapidly expanding private credit market, but as they look to grow, memories of ...</p>\n\n<a href=\"https://www.cityam.com/the-spectre-of-2008-haunts-the-banks-private-credit-boom/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://www.cityam.com/the-spectre-of-2008-haunts-the-banks-private-credit-boom/","article_id":"2564873507","we_media_id":null,"thumbnails":["https://www.cityam.com/wp-content/uploads/2024/08/HSBC-CANARY-WHARF-1.webp?w=286&h=161&crop=1"],"rights":{"source":"cityam_highlight","url":"https://www.cityam.com/the-spectre-of-2008-haunts-the-banks-private-credit-boom/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2564873507","pubTimestamp":1756789200,"columns":[],"sourceInfo":{"source_id":"cityam_highlight","name":"cityam"},"weMediaInfo":null,"summary":"HSBC has laid out bold ambitions to move into private credit. Britain’s biggestbanksare trying to grab a slice of the rapidly expanding private credit market, but as they look to grow, memories of the financial crisis are coming back to haunt the lenders. The global private credit market notched $2 trillion  assets under management in 2024 and is expected to grow to $2.8 trillion by 2028.UK private credit funds raised 15.2bn in 2024 – a 14 per cent increase year on year. The rapid expansion of the market came as private credit filled in the void left behind by lenders in the wake of the financial crisis. From 2015 to 2022 the market ballooned to $1.4tn from $400bn.The UK’s domestic lending banks have adopted a mixed approach to entering the market.Lloyds, whilst not launching a dedicated fund, has integrated private lending into its commercial banking decision. Meanwhile, Barcla","collect":0,"end_time":0,"defaultTopTitle":"cityam.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","LU1267930227.SGD":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","LU2236285917.USD":"ALLIANZ GLOBAL INCOME \"AMG\" (USD) INC","BK4585":"ETF&股票定投概念","BK4521":"英国银行股","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","HSBC":"汇丰","BK4207":"综合性银行","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC"},"translate_title":"2008年的幽灵困扰着银行进军私人信贷","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"HSBC":0.9},"content_text":"HSBC has laid out bold ambitions to move into private credit. Britain’s biggest banks are trying to grab a slice of the rapidly expanding private credit market, but as they look to grow, memories of the financial crisis are coming back to haunt the lenders. The global private credit market notched $2 trillion (£1.5 trillion) assets under management in 2024 and is expected to grow to $2.8 trillion by 2028.UK private credit funds raised £15.2bn in 2024 – a 14 per cent increase year on year. The rapid expansion of the market came as private credit filled in the void left behind by lenders in the wake of the financial crisis. From 2015 to 2022 the market ballooned to $1.4tn from $400bn.\n\nThe market was able to fill a significant funding gap following post-crisis legislation, which limited banks’ ability to lend to certain unregulated or opaque markets. Now, as Britain’s big banks turn their attention back to a blurry market, regulators have started to raise the alarm. Simon Hart, partner and financial services lead at RPC, said the private credit market is “more opaque than vanilla bank lending – and whenever something’s a bit opaque, everybody’s nervous about it”.Lending in foggy areas is what landed banks in hot water in 2008 with the likes of collateralised Debt Obligations (CDOs) – a financial product sliced into different portions of risk – often leaving investors with no idea what level of risk they were holding.\n\nThis lack of transparency sent waves of distrust across the industry and eventually helped trigger the collapse of interbank lending – the system that allows banks to lend to each other overnight – drying up.The Bank of England shared concerns earlier this year that the growth of private credit funds and “emerging complex structures within them” had created a “need for greater transparency”.“The interconnectedness between banks and these funds could amplify shocks in the financial system,” the bank added.HSBC pioneers private credit pushLeading the private credit charge is HSBC, with new boss Georges Elhedery, who took the helm last September, aiming to steer the bank into more high-returning lines.\n\nHSBC injected $4bn into its private credit fund earlier this year as part of a plan to scale the platform to $50bn within five years.Nicolas Moreau, chief executive of HSBC Asset Management, described the battle to ramp up private credit lines as an “arms race”. Hart said the relationship between banks and private credit had “grown” beyond banks simply referring clients to firms for loans they could not provide.“This seems to be a place where the banks are beginning… to actually put some of their capital for the purposes of deploying and it’s becoming a sort of alternative route to market for those banks,” he told City AM.\n\nThe UK’s domestic lending banks have adopted a mixed approach to entering the market.Lloyds, whilst not launching a dedicated fund, has integrated private lending into its commercial banking decision. Meanwhile, Barclays has partnered with AGL Credit Management as part of its expansion into private credit.Natwest has used its private banking arm Coutts, which engage in private credit offerings to high-net-worth clients through bespoke borrowing solutions.The Mansion House Accord designated private credit as one of the key unlisted asset classes to be included in pension giants’ 10 per cent target to invest default funds in private markets by 2030.This was accompanied by a fleet of regulatory reforms on financial services in a bid to unleash investment and, as Rachel Reeves said, remove the “boot on the neck” of businesses.Crisis memoryHowever, there are growing concerns about the risks of private credit to the global economy.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}