Recent corporate failures and concerns around underwriting standards have heightened attention on the sector. In addition, rapid advances in artificial intelligence have raised questions about the resilience of some borrowers, particularly software companies. Despite these developments, Deutsche Bank said it is not exposed to 'significant risks' linked to non-bank financial institutions. However, the bank noted that indirect credit risks could emerge through interconnected portfolios and counterparties. The report also highlighted growing attention on risks within private credit markets. It stated that 'failures of a select number of sub-prime lenders in the U.S. increased investor focus on risks associated with private credit and raised wider concerns around underwriting standards and fraud risk.' Even as risks draw greater scrutiny, Deutsche Bank signalled ambitions to strengthen its position in the market. The bank said it plans to expand its private credit offering through...
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