Banks are owed $349B by private credit funds that may not be collecting cash from borrowers

Private credit funds can count interest as income even when the borrower hasn't sent them any cash, because some loan contracts let businesses add interest to what they owe. That gives a company more time to pay, but it doesn't extend the same courtesy to the fund, which could have borrowed money from a bank… Read the full story on CryptoSlate Understand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
Key Takeaways
- Banks are owed $349B by private credit funds that may not be collecting cash from borrowers.
- Private credit funds can count interest as income even when the borrower hasn't sent them any cash, because some loan contracts let businesses add interest to what they owe.
- Get The Catalyst in your inbox
Private credit funds can count interest as income even when the borrower hasn't sent them any cash, because some loan contracts let businesses add interest to what they owe. That gives a company more time to pay, but it doesn't extend the same courtesy to the fund, which could have borrowed money from a bank… Read the full story on CryptoSlateUnderstand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
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