Jamie Dimon Warns Private Credit Losses Will Be Larger Than Feared
In his annual shareholder letter published today, Dimon said private credit losses are already slightly higher than they should be given the environment, and that weakening credit standards will push them higher.
He flagged that private credit lacks rigorous loan valuations, increasing the chance of forced selling even when realized losses remain manageable, and warned that insurance regulators will eventually demand more capital.
He echoed the Fed's view that the $1.8 trillion private credit market doesn't pose systemic risk, but said that anything sold to retail investors should demand greater transparency and fewer conflicts.
Source: Financial Times


