Market Chatter: Japan's Private Credit Assets Surge 2.5 Times as Local Investors Chase Higher Returns
Total assets in Japan's private credit funds reached 750 billion yen at the end of February, 2.5 times higher than nearly a year prior, Nikkei Asia reported Wednesday.Private credit refers to loans made by nonbank institutions such as investment funds, typically targeting midsized or smaller companies, rather than through traditional banks, the report said.Domestic investors searching for greater returns are fueling rapid growth in private credit funds, even as overseas investors look to exit due to worries about direct lending, the publication reported.Japanese publicly offered investment trusts in the private credit space held only around 3 billion yen in assets five years ago, Nikkei Asia reported Wednesday, citing QUICK Asset Management Research Center's data.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)