Private credit faces a pre-crisis reckoning
The discussion, citing Jamie Dimon and Lloyd Blankfein, argued parallels to the pre-2008 period, with concerns about sloppy underwriting, a tidal wave of capital, and illiquidity creating a potential crisis, especially in software loans.
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The Callback
Private credit slowdown threatens debt refinancing cycles
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The guest argued that a large portion of the leveraged loan and private credit market - specifically pre-GPT vintage SaaS LBOs - faces significant risk from AI and cloud competition, potentially leading to clustered defaults with low recoveries.
The discussion, citing Jamie Dimon and Lloyd Blankfein, argued parallels to the pre-2008 period, with concerns about sloppy underwriting, a tidal wave of capital, and illiquidity creating a potential crisis, especially in software loans.