Insurers have quietly become a major driver of the private credit boom, with numerous private equity shops striking deals with insurance companies or buying them outright. But the entanglement with private credit is also changing the insurance industry itself, raising a number of questions about risk and regulation. Today we speak to Andrew Granato and Pranjal Drall, authors of a new paper, “Private Credit's State Backstop: How Private Equity Socializes Risk Through Insurers," examining the relationship between private credit and insurance. Granato (an assistant professor at the UT Austin Law School) and Drall (JD-PhD student in Financial Economics at Yale) talk to us about how PE got so interested in insurance in the first place, how both sides benefit from the relationship, and why taxpayers might ultimately be on the hook. Read more: Blue Owl Surges as Leaders Stress It’s More Than a Direct Lender [https://www.bloomberg.com/news/articles/2026-07-30/blue-owl-reports-fund-raising-slow-down-amid-credit-pullback?utm_medium=referral&utm_source=podcast&utm_campaign=odd_lots&utm_content=article] Ares $29 Billion Private Credit Fund Sees Uptick in Non-Accruals [https://www.bloomberg.com/news/articles/2026-07-29/ares-29-billion-private-credit-fund-sees-uptick-in-non-accruals?utm_medium=referral&utm_source=podcast&utm_campaign=odd_lots&utm_content=article] Only Bloomberg - Business News, Stock Markets, Finance, Breaking & World News [http://bloomberg.com/] subscribers can get the Odd Lots newsletter in their inbox each week, plus unlimited access to the site and app. Subscribe at  bloomberg.com/subscriptions/oddlots [https://www.bloomberg.com/subscriptions/oddlots?in_source=oddlotspodcast] Subscribe to the Odd Lots Newsletter [http://bloomberg.com/subscriptions/oddlots] Join the conversation: discord.gg/oddlots [https://discord.gg/oddlots] See omnystudio.com/listener [https://omnystudio.com/listener] for privacy information.