Since 2025, concerns in the private credit market have led to a crisis.
Background
In the shadow banking system, private credit is an asset that is lent by a non-bank financial institution to a private business.
History Initial concerns In June 2025, DoubleLine Capital chief executive Jeffrey Gundlach compared interest in private credit to the conditions that preceding the subprime mortgage crisis. The following month, JPMorgan Chase chief executive Jamie Dimon signaled that private credit may have reached its "peak", while Morgan Stanley chief executive Ted Pick indicated that banks had begun to expand into the private credit market.
Blue Owl In February 2026, Blue Owl Capital announced that it would no longer allow investors to request set amounts of money from the firm, setting off concerns about private credit.
Responses Political In July 2025, Massachusetts senator Elizabeth Warren sent a letter to secretary of the treasury Scott Bessent and several ratings firms requesting information on risk assessment in the private credit market.
The second Trump administration has encouraged consumer exposure to private credit amid the crisis.
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