Good morning from the Financial Times.
Today is Monday, August 17th, and this is your FT News Briefing.
Strains in private credit are worsening,
and the boss of America's biggest bank has a warning for the UK's new chancellor.
Plus, US national debt is about to hit a grim milestone, but is there appetite to fix it?
For both political parties, it's not really a sexy topic to tackle once you're actually in government.
I'm Victoria Craig, and here's the news you need to start your day.
Private credit industry is facing its biggest challenge in about a decade.
Data crunched by the FT shows some of the largest funds are taking write downs on their private credit portfolios,
and they're warning about problem loans.
The FT's U.S. Investment editor, Eric Platt,
has been combing through the data and joins me now to talk about what he's found.
Hi, Eric.
Hey, Victoria.
So just quantify the scale of this challenge for me.
What's happening?
Sure.
So we've parsed nonaccruals.
They're effectively problem loans at some of the largest publicly listed.
Private credit funds.