The private credit market has emerged as a significant investment opportunity on Wall Street, driven by a notable increase in funding costs affecting the market for repurchase agreements backed by equities. JPMorgan has reported a persistent surge in demand for these equity-backed repos, a trend that is expected to continue. This demand is linked to a new financial instrument known as SRTs (Structured Risk Transfers), which effectively shifts loan risks from banks to investors. The total amount of primary-dealer equity financing in repos has reached its highest level since April 2013, indicating a robust interest in these financial products as investors seek to capitalize on the current market dynamics.