Moody's rating agency cited regulatory institutions and industry institutions in a new report, stating that the rapid growth of private credit borrowing outside of traditional markets highlights its opaque nature and regulatory concerns for the risks it may pose to the US economy in the future. In recent years, banks have faced competition from private credit borrowing institutions, which mainly target medium-sized enterprise borrowers and provide non-public trading debt through non-bank companies. Moody's stated in the report that under the increasing demand from investors, private credit borrowing institutions have recently begun to enter other lending opportunities beyond the mid-market, such as asset-based refinancing. According to data from PitchBook LCD, as of mid-May this year, banks have refinanced $14 billion in debt previously provided to private loan institutions. As of May 15th, banks have also provided $44 billion in leveraged loans for mergers and acquisitions, about twice the amount of the same period last year. This in turn has eroded the investment returns of private credit investors, leading lenders to seek new opportunities such as investing in investment-grade asset financing.