All articles tagged with #private credit market
Bank of England Governor Andrew Bailey warns of rising risks in the private credit markets, drawing parallels to pre-2008 financial crisis practices, amid recent failures of US companies First Brands and Tricolor, and considering a systemic stress test for the market.
Concerns about souring loans and risky lending practices have caused shares of regional banks and Jefferies to decline, amid auto industry bankruptcies and exposure to bad loans, raising fears of a potential banking crisis, although overall market impact remains limited so far.
JPMorgan Chase CEO Jamie Dimon warned that the rapidly growing private credit market could face significant issues due to bad actors, potentially causing turmoil. While the sector fills financial needs for overlooked firms, risks are not well known, and retail investors might face illiquid or improperly marked assets. Despite these concerns, JPMorgan is looking to expand its presence in the private credit space.