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.



Source

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