Private Credit Consumer Debt Holdings Surge $150 Billion

Private credit firms are increasingly investing in consumer debt, seeking higher yields. This trend has seen their holdings in this sector grow by an estimated $150 billion since 2019. The Wall Street Journal highlighted FinTech company Bilt, which offers rent rewards, as an example. Bilt faced challenges when Wells Fargo ceased its role as a lender for Bilt's credit card, illustrating the evolving landscape of financial partnerships and the growing appetite for consumer debt assets among private lenders.