Jeffrey Gundlach Warns of ‘Garbage Lending’ as Private Credit Booms
Gundlach recommends a cash position to hedge against a market implosion, which he sees brewing in unsafe lending to private companies and overblown hopes for artificial intelligence.
The DoubleLine Capital founder warns that the next big crisis in the financial markets is going to be private credit, which has the same trappings as subprime mortgage repackaging had back in 2006.
One of Wall Street’s bond kings is spotting overpriced assets almost everywhere he looks. In an episode of the Odd Lots podcast recorded to mark the show’s 10-year anniversary, Gundlach called out nosebleed valuations in the equity market and warned investors against “incredibly speculative” bets.
Bloomberg 17 November 2025
Warning for Private Credit: Feels Like 2006; Just Like CDOs
juni 12, 2025
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.
https://englundmacro.blogspot.com/2025/06/warning-for-private-credit-feels-like.html
Jamie Dimon sees parallels between the growth of private credit and the 2008 subprime mortgage crisis.
JPMorgan Chase is investing $50 billion in private credit despite Dimon’s warnings of potential risks.
https://englundmacro.blogspot.com/2025/07/jamie-dimon-sees-parallels.html
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