Hi, this is Inside Economics.
I'm Rachna Shanbhog, The Economist, Business Affairs Editor.
Private credit has hit the headlines recently.
A number of funds have seen a rush of clients trying to redeem their investments.
One company, Blue Owl, has had to shut down one of its funds entirely.
This is an asset class that 's seen explosive growth and which,
as a consequence, is often touted as the source of the next financial crisis.
So what's actually going on and how worried should you be?
With me to help make sense of it is Mike Bird, our Wall Street editor, who's visiting London.
Hey, Mike.
Hey, Rachna.
And Henry is away, so we're very pleased to be joined by Josh Roberts, who covers capital markets for us.
Hello, Josh.
Hi, Rachna.
Today we're going to look at three things.
What private credit is.
Just how much trouble the asset class is in.
And last, I want us to look at the wider consequences for the rise of private markets,
the financial system and the economy as a whole.
So if we start first then with what private credit actually is, Mike, you're our Wall Street editor, explain it to us.