Dec. 1 at 7:36 PM
Major private-equity groups have agreed to take part in a Bank of England stress test examining how the private-credit market would respond to a major crisis.
Blackstone, Apollo, KKR, Ares Management, and CVC volunteered for the assessment, according to a Financial Times report, with the official announcement expected this week. The central bank’s “system-wide exploratory scenario,” scheduled for next year, will evaluate the resilience of lightly regulated non-bank lenders during a severe economic shock.
The test will cover multiple areas of private credit—including leveraged loans, high-yield bonds, asset-backed financing, and private-equity lending—focusing on how these markets might function in a crisis and the potential spillover effects on banks, the broader financial system, and the economy.
Because the Bank of England does not directly regulate many major private-credit providers, the exercise relies on voluntary participation.
$BX $APO $KKR $ARES