Discussion Paper

Private Credit and Leveraged Loan Markets: Similarities, Differences, and Substitution


Abstract: Private credit (PC) and leveraged loan (LL) markets are two key sources of financing for below-investment-grade middle-market firms, typically those with revenues between $10 million and $1 billion). Although these two markets have different structures and rely on different lenders, they have become increasingly interconnected in recent years, with some firms seeking financing in both markets.

https://doi.org/10.17016/2380-7172.4133

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Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2026-08-11

Number: 2026-08-11