Odd Lots: Why Private Credit Got Entangled With Insurance

Insurance companies have become significant investors in private credit markets, according to a paper by Andrew Granato and Pranjal Drall titled "Private Credit's State Backstop: How Private Equity Socializes Risk Through Insurers." Granato and Drall discussed the arrangement with Bloomberg reporters Tracy Alloway and Joe Weisenthal, noting that both insurers and private credit firms benefit from the partnership. The shift has altered the insurance industry and raised questions about risk management and regulatory oversight.

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