Private Credit Concerns Grow as Execs See Tough Times Ahead

Concerns have been bubbling up over the $1.8 trillion private credit market in recent weeks, with investors spooked in part by the risk of artificial intelligence on some borrowers and worries about valuations. Last month, a Blue Owl Capital Inc. fund opted to halt quarterly redemptions and started selling assets to return money to investors. This week, Blackstone Inc.'s flagship private credit fund allowed investors to redeem a record 7.9% of shares. JPMorgan Chase & Co. CEO Jamie Dimon has spoken of failed corporate borrowers as "cockroaches," suggesting there could be more. Bloomberg News Chief Correspondent for Private Capital Davide Scigliuzzo joins Bloomberg Businessweek Daily to discuss. He speaks with Carol Massar and Tim Stenovec.