SEC consults Labor Department on rule for private credit in 401(k)s
Updated
Updated · The Wall Street Journal · May 4
SEC consults Labor Department on rule for private credit in 401(k)s
11 articles · Updated · The Wall Street Journal · May 4
At the Milken Institute Global Conference, Chairman Paul Atkins said trustees need firm guidance, including whether debt is investment-grade or junk-rated.
He said the agency is taking concerns over mass redemptions and loan defaults seriously as it weighs allowing other private investments in retirement plans.
Atkins added the SEC and other agencies are examining several private-credit fund managers in routine oversight, but do not currently see the industry as a systemic risk.
With loan defaults rising, are retirement savers being exposed to private credit's 'shadow banking' risks at the worst possible time?
New rules promise higher 401(k) returns, but how will savers be protected when illiquid private funds suddenly block their withdrawals?