Chart of the day
The credit squeeze continues
People are moving money from banks to money market funds due to higher and more attractive interest rates. This means banks will have less money to lend and they will have no choice but to become more selective with who they lend money to.
As such, the availability of credit looks likely to become a growing concern for businesses, and it may ultimately become more expensive. This could invariably hamper the growth of fintech companies and portfolio companies in the private equity arena, with cheaper capital often being a prerequisite to their growth.