Banks Back Private Credit's Rise. Should Borrowers Care?

Mark Edelstein spoke to Law360 about the rise of private credit lenders in real estate and banks providing back-financing. He noted that while private credit lending has grown significantly popular in recent years, the investment space hasn't yet been tested by a major market downturn.

Mark said, “No one really knows what kind of experience they're going to face when the market gets choppy, or we go into another recession.”

He also drew parallels between the increase in private credit to the rise of commercial mortgage-backed securities (CMBS) in the late '90s.

“I think there will be a culling, like there was in CMBS,” he said. “At some point, there are just going to be too many lenders.”

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