Private Credit Warning Puts Nontraditional ABS in Focus at KIW 2026

Paul Norris, vice president at American Century Investments, said on May 13 at Korea Investment Week 2026 at Seoul’s Shilla Hotel that the private credit market feels like a deja vu of the 2008 subprime crisis. He said nontraditional asset-backed securities, or ABS, away from broader market influence could emerge as an alternative investment. ABS are securities sold by bundling loans or assets. Nontraditional ABS are backed not by auto loans or credit-card receivables but by assets such as data centers, solar loans, aircraft, railways and franchises, reducing dependence on any single industry. By contrast, 30% of private credit assets are concentrated in software, IT and healthcare, while refinancing pressure is rising for loans issued in 2021 and 2022. Source: hankyung.com