In this episode of the Beyond Stocks Podcast, Pedro and Chihiro dive into the world of Private Credit — exploring how it has evolved since the Great Recession of the late 2000s and what investors need to watch out for today.
After 2008, new regulations forced traditional banks to tighten lending standards. This opened the door for private lenders to step in, offering loans to borrowers deemed too risky or undesirable for banks. While private credit has exploded in popularity, it also comes with fewer transparency requirements - leading some to consider it a financial black box. Jamie Dimon recently commented that private credit could be a "recipe for a financial crisis."
Pedro and Chihiro ask the big questions: Could a downturn in private credit trigger systemic risks similar to 2008? Or has the market matured enough to handle stress without collapsing?
Whether you’re new to alternatives or a seasoned investor, this episode will help you understand the opportunities and risks of private credit in today’s market.
How private credit emerged after the Great Financial Crisis (GFC)
The similarities and differences between 2008 subprime lending and today’s private credit boom
Why private credit portfolios can be opaque and difficult to evaluate
Potential risks if widespread loan deterioration were to occur
How accredited investors should think about private credit allocation and due diligence
Learn more about us at www.beyond-stocks.com
If you found this episode helpful, subscribe to Beyond Stocks, leave us a review, and share it with someone curious about investing beyond Wall Street.