15-07-2025
- Business
- Wall Street Journal
Private Credit Can Bring Risk Along With Liquidity to Commercial Property Finance
Private credit's growth is adding liquidity—and risk—to the U.S. commercial real-estate market, according to a report from Moody's Ratings.
Interest rates staying higher for longer and recent declines in property values are expected to drive more CRE borrowing to nonbank lenders in the coming years. Against market headwinds, private credit has stepped in to fund borrowers that may not meet traditional banking standards, according to Moody's.