Private credit funds hold massive bank debt with unpaid interest

Community Trust Score Likely Real 78 % Real Likely Real 40 votes Updated 9 minutes ago Banks are owed $349 billion by private credit funds, a figure that highlights a potential disconnect between reported income and actual cash flow in the private credit market. The core of this issue lies in how private credit funds account for interest. According to the available data, these funds can record interest as income even when the borrower has not sent any cash.