Morgan Stanley plans to double private credit portfolio to $50 bln  

Market Impact

With market participants increasingly expecting the Federal Reserve to cut interest rates, traditional banks are starting to become more competitive in loan markets versus to direct lenders, said Jeff Levin, Morgan Stanley’s co-head of North America private credit and head of direct lending. Lower rates will enable banks to charge companies less in interest for risky loans than private credit participants, who typically charge more. And cheaper borrowing costs are likely to spur more economic activity and deal making in general, another factor that could spur activity for banks.