5. Private Debt Flood

Wealthy investors are increasingly competing alongside regulated lenders for private debt deals – ballooning to a market now worth more than $780 billion. Family offices are pouring more funds into lending, especially to smaller companies (often with some ties to the family’s source of wealth).

The perks are potentially very high returns not possible in the traditional bond market. But risks abound: a market crash would likely render the already illiquid loans into duds.