Federal officials and banks dealing with the subprime mortgage mess helped create the “zombie” mortgages crisis https://t.co/PRsLSxEE0D ...

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 ...