Moody's: The increased volatility in private credit may lead the market to pay more attention to liquidity and transparency.

Moody's rating agency stated in a report that the increasing volatility of private credit may lead the market to pay more attention to liquidity and transparency. Moody's cited recent redemption requests from semi-liquid funds, stating that volatility is becoming a more important component of this market. The agency added that regulatory reviews and the expansion of this asset class to retail investors may increase the demand for valuation discipline and higher transparency. Moody's also mentioned that alternative asset management companies may face pressure to enhance information disclosure as decision-makers, the banking industry, and global regulatory bodies strengthen oversight of the entire ecosystem. Despite these challenges, Moody's expects that the growth of private credit will be supported by strong financing demand in areas such as data centers, energy transition, and defense.