Middle Market & Private Credit – 12/8/2025

US Life Insurer Investment Risk Rising from Private Letter Ratings

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Signs of emerging bubbles have increased in 2025 amid robust investor risk appetite, high market valuations, a rush of capex in AI-related industries and continued growth in private lending channels. The dichotomy between the favorable funding and liquidity environment and a lackluster macro-economic outlook underscores that there may be growing asset bubble risks.