Likewise, as bank lending is constrained, companies will not solely rely on banks for credit and will turn to markets.
There is an abundance of capital sitting idle today that is being deployed too narrowly, says BlackRock chairman and CEO Larry Fink in his annual chairman’s letter on March 31. To that end, Fink pledges to make private markets more accessible to everyday investors and not just the wealthy few.
“As we enter our century’s second quarter, there’s a growing mismatch between the demand for investment and capital available from traditional sources,” Fink says. “Governments can’t fund infrastructure through deficits. The deficits can’t get much higher. Instead, they’ll turn to private investors.”
