When companies need a loan, traditionally they turn to a bank.

But increasingly they’re turning to financial firms that are not really banks, but do have a lot of cash. This is called the “private credit” market. It has exploded in the past 15 years. It’s now valued at around $2 trillion.

Natasha Sarin, president of the Yale Budget Lab and former Biden administration official, argues that these private credit firms are making risky loans. So risky, that they’ve got her thinking about the 2008 financial crisis. 

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This episode was produced by Erika Ryan and Alejandra Marquez Janse, with audio engineering by Andie Huether and Josephine Nyounai. It was edited by Adam Raney and John Ketchum. Our executive producer is Sami Yenigun.




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