Moody's: Fund Finance Market Tops $1 Trillion

Moody's report shows fund finance market exceeded $1 trillion in 2026, driven by private credit expansion.
Private credit funds act as both borrowers and lenders in NAV loans, offering longer tenors, flexible underwriting, higher returns, higher risk.
Moody's warns AI-driven disruptions in software firms stress US direct lending asset quality and trigger investor withdrawals from related private credit funds.
Banks are securitising NAV facilities into asset‑backed securities to transfer risk, broaden investor base, and access capital markets.