Could private credit become the next big financial crisis? | Odd Lots #podcast

Market Quality & Lending Practices - Public corporate credit market quality is currently better than pre-global financial crisis due to less "garbage lending" [1] - "Garbage lending" has shifted from public to private markets in recent years [1] Private Credit Concerns - Private credit is becoming overallocated by large asset pools [2] - Executives at large private credit firms express concerns like "tension" and "lack of runway," indicating potential issues [2][3] - The industry anticipates defaults in private credit [3] - Private credit is compared to subprime mortgage repackaging in 2006, suggesting a potential future crisis [3] - The unraveling of private credit issues may take time, potentially years [3][4] Negative Outlook - The industry holds a negative view on private credit [4]