Wall Street braced for a private credit meltdown. The risk of one is rising

Wall Street braced for a private credit meltdown. The risk of one is rising


Key Points
  • Private credit has surged in popularity since post-financial crisis regulations discouraged banks from serving riskier borrowers.
  • JPMorgan Chase CEO Jamie Dimon warned after a pair of private credit-backed companies declared bankruptcy that problems in credit are rarely isolated.
  • Companies that are most linked to the asset class, such as Blue Owl Capital, as well as alternative asset giants Blackstone and KKR, are trading well below their recent highs.



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