Private credit assets will be worth almost $4tn by 2030, according to a recent report by Moody’s. b''Critics of the shadow banks have accused them of “mark-to-myth” valuations that readily account for unrealised gains but rarely take hits even as a loan is obviously turning bad. The FCA declined to comment on which of the major players in private credit it had approached about their loan valuation practices. Funds often themselves borrow money from traditional banks, exposing the wider system to risk. Pensions riskUS domestic banks have now lent $1.2tn to shadow banks, according to ratings agency Moody’s, which estimated that $300bn of these loans were to private credit providers.