How Mark Walter turned a ho-hum insurer into a risk-taking lender (opens the source in a new tab)
- Private credit Loans made by investment funds instead of banks, usually less regulated and less visible. is 45% of its debt holdings, up from 9%
- Two of its three largest loans go to Walter’s own firms
- About 80% of the affiliated loans are rated BBB or lower, the lowest investment grade.
- 97%
- credit line used
- $20bn
- under probe
- 80%
- owner loans ≤BBB
Why it matters Policyholders’ money is funding riskier loans
Other side Walter and his companies deny wrongdoing, and the loans carry investment-grade ratings.