Private credit firms to begin stress-testing against deep global recession (opens original article in a new tab)

UK banks and private credit firms are conducting stress tests for a hypothetical deep global recession, involving economic shocks, tech sector impacts, and high inflation and unemployment rates.

• UK banks and 46 private credit firms to stress-test against hypothetical global recession scenario
• Scenario includes 5-year macroeconomic shock with tech sector disruption, 7% inflation, 7% interest rates, and 7.5% unemployment
• Private credit market, with $11 trillion in assets, faces scrutiny due to less regulation and recent industry collapses