Private Credit Marks Drawing More Scrutiny From SDNY Prosecutors

Wall Street’s top prosecutor said his office is looking at possible valuation discrepancies in the private credit marketplace.

Jay Clayton, the US attorney for the Southern District of New York, addressed the issue Wednesday while speaking at the Bloomberg Global Credit Forum in New York.

Clayton said the difference between the price at which assets are marked on one balance sheet versus others was at the heart of blowups at First Brands Group, Tricolor Holdings and 777 Partners.

WATCH: Jay Clayton, US attorney for the Southern District of New York, says his office is looking at possible valuation discrepancies in private credit.

Source: Bloomberg

“Where you look is when you have a market where there’s a bunch of participants and a large ...