Private credit risk doesn’t have to be systemic to be serious
Risk management leader outlines three cracks in the consensus that risk in the private credit sector is contained
“Psychological contagion” was the stark phrase used by US Federal Reserve governor Michael Barr to describe the spillover effect of a rise in private credit risk during a Bloomberg interview in May.
JP Morgan boss Jamie Dimon was even more blunt. “When you see one cockroach, there are probably more,” he said on an earnings call last October, in response to fears that the collapse of US companies
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