Japan watchdog probes private debt exposure amid U.S. risk concerns

Japan's financial watchdog seeks to probe domestic banks' exposure to private debt through inquiries, sources close to the matter said Thursday, as concerns grow over risks in U.S. private credit funds and some investors move to pull out.Private credit refers to lending by nonbank entities to companies that have difficulty borrowing from the traditional banking sector due to low creditworthiness. Originating in the United States, private credit funds primarily generate income by charging interest on loans to companies.Such funds have attracted investment from institutional investors and wea…READ FULL ARTICLE