Private Credit Valuations Worry World’s Financial Watchdogs (2)

Top financial regulators around the globe are voicing concern about private credit valuations, whether lenders are hiding troubled loans, and the deep entanglement between private markets and insurance money.

“Valuation risks are where we see a core issue,” Andrew Dean, the co-chief of the Division of Enforcement Asset Management at the US Securities and Exchange Commission, said during a Bloomberg regulatory forum in New York City on Tuesday.

Dean was joined by regulators from the European Central Bank and the International Monetary Fund, who also emphasized a need to prod private credit firms about portfolio valuations and warned ...