Blackstone, Apollo and KKR have agreed to take part in the Bank of England’s planned stress test of the private credit market, according to a report by the Financial Times citing people familiar with the matter. The central bank is expected to confirm the exercise this week.
Ares Management and CVC are also set to join the system-wide exploratory scenario, which will assess how non-bank lenders would respond to a severe market shock. The move follows growing regulatory concerns after recent failures in the US auto lending sector highlighted potential vulnerabilities in private credit.
The test will model stresses across leveraged loans, high-yield bonds, asset-backed finance and private equity borrowing, examining potential spillovers to banks and the wider financial system.
