The Role of Private Debt in the Financial Ecosystem

Victoria Ivashina

No 34426, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper provides a comprehensive introduction to private debt, examines the key drivers behind its expansion, and frames the discussion around potential risk accumulation in the broader economy. Overall, the development of private debt can be viewed as the emergence of a new technology that facilitated the expansion of the high-yield corporate debt market into the middle market. Throughout its history, the evolution of the high-yield debt and the rise of private debt have been closely intertwined with the growth of private equity. Historically, banks have not had significant exposure to financing buyouts or other highly leveraged transactions, whether in the large-cap or mid-cap segments.

JEL-codes: G01 G1 G2 G23 (search for similar items in EconPapers)
Date: 2025-10
New Economics Papers: this item is included in nep-cfn and nep-his
Note: CF
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