JPMorgan Chase: Huge growth potential in the private credit market in the Asia-Pacific region

JPMorgan believes that the private credit market in the Asia-Pacific region has huge growth potential, with a focus on various Asian countries including Australia and India. JPMorgan points out that the bank has been actively establishing private credit business in the Asia-Pacific region since 2019, targeting medium-sized companies with strong fundamentals but without investment-grade ratings. JPMorgan states that Asia has been driving over 50% of global GDP growth, and is home to some of the largest economies in the world. The overall debt market in Asia is only about $1.5 trillion, but with strong GDP growth. In terms of private credit, the annual transaction size in the past two years may have been only about $200 billion, showing a significant gap that still needs to be bridged. Therefore, JPMorgan believes that the private credit market in Asia is still in its early stages.