Gundlach Warns Private Credit Could Trigger Next Crisis

Jeffrey Gundlach, CEO of DoubleLine Capital, warns of a potential private credit crisis, drawing parallels to the subprime mortgage crisis. He highlights the growing private credit market and its lack of transparency, which he believes is driving its popularity and success. Jamie Dimon, CEO of JPMorgan Chase, shares similar concerns. The recent bankruptcy of Renovo, a home improvement contractor, illustrates the risks, as a loan from BlackRock dropped to zero. Gundlach emphasizes the lack of regular repricing in private credit, which can lead to sudden and severe market corrections.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.