Matt Levine’s Money Stuff: JPMorgan Will Lend Companies Money

Bank private credit

My crude stylized story of private credit is:

1. If you are a certain sort of company — most classically, a private equity firm doing a leveraged buyout — and you want to borrow money, you will go to a bank and say “we need $1 billion.” The bank will say “okay, we can get you that $1 billion, but we will need to go out and find investors to put up the money, so we’ll need a few weeks before we give you the money, and we will need some flexibility on exactly what interest rate you will pay to ...