European banks offload $500 billions in corporate loan risks through "private credit" and hedge fund channels

The rampant expansion of this market is prompting regulators in multiple countries to seek stronger supervision, in order to gain clearer insight into the potential risks or contagion effects that could arise during a surge in bad loans. Data compiled by Bloomberg shows that as of the end of last year, approximately 11.1% (equivalent to $509 billion) of corporate loans from major European banks were deeply tied to SRT transactions.