Fund finance market surpasses $1 trillion as private credit demand rises

10 articles · Updated · Reuters · Apr 27

Moody's reports the fund finance market exceeded $1 trillion in 2026, fueled by private credit growth and increased use of NAV loans.
Banks are bundling NAV loans into asset-backed securities, while hybrid structures secured by both NAV and investor commitments are emerging.
Moody's warns of weakening asset quality in US direct lending, AI-driven disruption in software, and stresses the need for prudent underwriting as leverage-on-leverage structures become more common.

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