What is private credit, and should we be worried by the collapse of US firms?

The recent collapse of US firms First Brands and Tricolor has raised significant concerns about the private credit market and its impact on the broader financial sector, including traditional banks. These failures have resulted in substantial losses for banks, highlighting the risks associated with private credit's growing influence in the global economy. As investors and analysts assess the implications, it's crucial to understand how these developments could affect financial stability and lending practices moving forward.