The state of credit markets is akin to a Rorschach test. Those with a sunny outlook say moving riskier debt away from banks and into funds and markets has made the whole system more stable. Proponents also say the booming subsection known as private credit offers prospective borrowers more customized options to match their precise needs.

But the bumps and shocks of last year suggest the expansion of credit might be creating new risks — including private loans that are driving foreclosures in the home-flipping market. The following stories, from the latest edition of Bloomberg’s Markets Magazine, offer a deeper look at what’s happening in credit.

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