Warning for Private Credit: Feels Like 2006; Just Like CDOs

Private credit has no shortage of evangelists on Wall Street. Jeffrey Gundlach is not one of them.

 “Private credit today is analogous to the CDO market in the mid-part of the 00s, where there’s just tremendous issuance, there’s tremendous acceptance,” the veteran bond investor said. 

“There is a lot of overinvestments in private credit and the liquidity is not very good.”

Gundlach criticized several of private credit firm’s main selling points, 

including the idea that the asset class provides less volatility for investors compared to liquid fixed-income alternatives.

“We all know that’s only because they don’t mark them to market,”

Bloomberg 12 June 2025

https://www.bloomberg.com/news/newsletters/2025-06-12/bond-king-gundlach-has-a-warning-for-private-credit-feels-like-2006


The private credit market $1.5 trillion
https://englundmacro.blogspot.com/2025/04/experience-shapes-expectations.html


Higher interest expenses feed into deeper deficits,sparking more borrowing
There will be no road left to kick the can down.
Jeffrey Gundlach The Economist 13 december 2024
https://englundmacro.blogspot.com/2025/01/americas-sovereign-debt-spiral.html






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