AVOID PRIVATE CREDIT CALLING IT THE NEXT SUBPRIME. AND TRADING FOR UNCLE SAM. NICOLE HELD PRIVATE TALKS WITH TREASURY SECRETARY SCOTT BESSENT ABOUT MOVING THE BANK'S HEADQUARTERS TO AMERICA ACCORDING TO THE FINANCIAL TIMES.THE TRUMPET ADMINISTRATION IS SAID TO BE RECEPTIVE AS SWITZERLAND PUSHES AHEAD WITH TOPPER CAPITAL RULES THAT COULD COST UBS $26 BILLION. IT WOULDN'T REALLY COST THEM THAT BUT WE WILL EXPLAIN. A RELOCATION COULD LET THE WORLD'S BIGGEST WEALTH MANAGER TO APPALOOSA REGULATIONS AND DEEPEN IT ...

Core Viewpoint - KKR's co-head of credit and markets, Christopher Sheldon, disagrees with DoubleLine Capital CEO Jeffrey Gundlach regarding the potential crisis in private credit, asserting that the market is currently stable despite economic slowdowns [1] Group 1: Market Condition - Sheldon does not observe signs of "garbage lending" as described by Gundlach, indicating a healthy state of the private credit market [1] - The private credit market is reported to be in good shape even amid a slowing economy, suggesting resilience in this sector [1]

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]

The most ridiculous argument of all for private credit has been private credit belongs in every portfolio because it lets you sleep at night, because it helps you ride out the volatility of your public credit. Again, that's just a repackaging of the volatility. If you don't market to market, there's no volatility.But if the price goes from zero in a matter of a few weeks, there's something something untoward is going on. And so I'm very, very negative on those types of, you know, non-transparent markets. It ...

The most ridiculous argument of all for private credit has been private credit belongs in every portfolio because it lets you sleep at night, because it helps you ride out the volatility of your public credit. Again, that's just a repackaging of the volatility. If you don't market to market, there's no volatility.But if the price goes from zero in a matter of a few weeks, there's something something untoward is going on. And so I'm very, very negative on those types of, you know, non-transparent markets. It ...

New research suggests that adding private credit or private equity to retirement portfolios could boost annual income over time https://t.co/XUBKY4E0Ee ...

Core Viewpoint - Jeffrey Gundlach, CEO of DoubleLine Capital, warns that many assets are overpriced and suggests investors maintain 20% of their portfolios in cash to guard against a potential downturn [1][2]. Market Conditions - Gundlach describes the current stock market as dangerously speculative, indicating it is among the least healthy he has observed in his career [2]. - He highlights speculative excess in AI-related stocks and data-center investments, cautioning that momentum investing during a boom can lead to negative outcomes [2]. Private Credit Concerns - Gundlach expresses significant concern over the rapid growth of the private credit market, valued at $1.7 trillion, which lends directly to companies [3]. - He compares the current situation in private credit to the subprime mortgage crisis, noting that lenders are making "garbage loans" [3][4]. - Recent failures in the sector, such as auto lender Tricolor and car parts supplier First Brands Group, are seen as early warning signs of potential issues [3]. Risks of Retail Investment in Private Credit - Gundlach criticizes the trend of selling private credit funds to retail investors, labeling it a "perfect mismatch" due to the promise of easy withdrawals despite the illiquid nature of these assets [4]. - He warns that if investors withdraw funds, it may force these funds to sell at significant losses [4]. Investment Strategy - Despite his warnings, Gundlach acknowledges the difficulty in profiting directly from this perspective, stating he will not short junk bonds due to ongoing losses [5]. - He maintains a positive view on gold but has reduced his recommended allocation from 25% to 15%, citing persistent inflation concerns driven by tariffs on import prices [5].

Private credit’s fast-changing landscape is introducing new layers of complexity and risk, according to Moody’s Ratings https://t.co/X03a4fjo6k ...

Stocks are overpriced. Bonds are overpriced. And private assets are a powder keg. This is the view of Jeffrey Gundlach, the founder and CEO of DoubleLine Capital.@TruthGundlach joins @‌thestalwart and @‌tracyalloway on the Odd Lots podcast to discuss how private credit is showing signs of trouble https://t.co/qoGXjc1GMM ...

Private Credit Market Concerns - Investors are concerned about private credit due to recent collapses like Tricolor Holdings and First Brands [1] - Jamie Dimon's "cockroaches in the economy" comment raised concerns about hidden risks in the credit market, not specifically an attack on private credit but a point about the credit cycle [1][2] - The rapid growth of private credit compared to banks raises questions about regulatory balance; either banks are over-regulated, or private credit is under-regulated [3] Systemic Risk & Regulation - The systemic risk of large private credit issuers is unknown, and the industry is not predicting a repeat of the 2008 financial crisis [4] - The credit cycle may be near its peak, but current pricing doesn't reflect this, creating a risk of a significant downturn [4]