The $1.7 trillion private credit market faces several challenges after years of rapid growth, according Ana Arsov, global head of private credit at Moody’s Ratings. “It’s going to be very important to get more transparency from the banks about is there some kind of synthetic leverage, additional leverage, coming to this market,” Arsov tells Bloomberg News’ James Crombie and Bloomberg Intelligence senior credit analyst David Havens in the latest Credit Edge podcast. Arsov and Havens also debate the impact of exchange-traded funds and broader implications of private debt stress. “It just doesn’t seem like the risk-transmission mechanism is nearly as potent in the way that private credit is structured today, as it has been in maybe some other areas that have caused systemic problems in the past,” says Havens.