However, the region is poised for growth, given the untapped market potential and deglobalization, which will force greater autonomy from the US and drive increased spending. Some progress has already been made to implement reforms that would stimulate the sector, including changes designed to unlock insurer capital for private credit, make securitisation more accessible and lower capital charges.
The European private credit market is gaining ground on the US, according to a report from Moody’s Ratings.
Over the last several years, the depth of the market in Europe has lagged behind the US, mostly because of regulatory and legal issues that have constrained the market’s growth, Moody’s said in its report.
