Marks: Private credit isn’t systemic, but rapid growth could strain lenders
Howard Marks says there’s no systemic problem in private credit, but the rapid growth of direct lending to over $1 trillion since 2011 could expose weaker lenders when markets turn; sentiment has cooled after borrower issues like Tricolor and First Brands, plus concerns about AI-related software loans, while fund flows show investors pulling money from Blackstone’s private credit fund, signaling caution in an unpredictable cycle.
