The Globe and Mail reports in its Thursday, Aug. 27, edition that Canadian investors and banks have about $500-billion in private credit exposure, primarily in the United States, underwritten by non-bank institutions and kept out of public view. The Globe's guest columnist Colin Kilgour writes that in a market that has expanded this quickly, careful scrutiny is warranted. The Bank of Canada's concerns are valid but concentrated in specific market areas. Generalizing the entire asset class would overlook significant differences in how various strategies are performing this cycle. Several real estate credit funds have experienced liquidity shortfalls due to a mismatch between the long-term nature of their investments and the short-term redemption rights offered to investors. This disconnect made it difficult for the funds to liquidate positions quickly enough to satisfy redemption requests. Both problems are real and worth watching. But both are specific to a subset of the private credit market, not the whole of it. Canadian investors considering private credit should seek diversification across borrowers and industries, limited leverage, alignment of investment term with underlying investments and a clear investment thesis.