'This will end poorly': JPMorgan execs warn of an imminent reckoning as the market's biggest investors plow into another credit bubble

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 25 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 51%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

As big investors have loaded up on private credit, JPMorgan executives caution that any downturn could have much different social effects than the last recession.

Investors have loaded up on private credit, pouring $240 billion into the asset class in just the last two years.

However, because credit exposure has shifted from huge banks to smaller groups, the executives said any downturn won't freeze up the financial system like the last recession did.Private credit has garnered $240 billion in inflows in the last two years alone, as non-bank groups filled the gaps left by banks leaving the lending space post-recession. Institutional investors, such as pension funds, endowments, and foundations, have stepped up to fund those non-bank groups.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

This bull market will not end with a massive pullback, investor Jeremy Grantham saysDon't expect a massive drop to signal the end of the longest bull market in history, investor and GMO founder Jeremy Grantham. Bullshit! That would be the first time in history then So bullmarket infinity?
Source: CNBC - 🏆 12. / 72 Read more »

Italy's finance chief says Rome's biggest problem is investor confidenceInvestor confidence is the biggest problem that Italy is facing, the country's finance minister told Class-CNBC Monday.
Source: CNBC - 🏆 12. / 72 Read more »

Exclusive: EPA aims to curb biofuel credit market speculation via five-pillared draft ruleThe U.S. Environmental Protection Agency's proposal to curb speculation in ...
Source: Reuters - 🏆 2. / 97 Read more »

On bull market’s 10th anniversary, can stock investors shrug off latest gloom?More dismal China data, a dovish about-face by the European Central Bank and a lackluster U.S. jobs report all left stock-market investors feeling the weight of the world on their shoulders this past week, sending Wall Street equities on a five-day skid on rising fears that a global slowdown could derail a bull market that celebrates its 10th anniversary on Saturday. Yup, just look at where interest rates are. Today is also the 19th anniversary of the Dot Com Bubble popping. RIP
Source: MarketWatch - 🏆 3. / 97 Read more »

Crypto Finance Grows Up: Tagomi’s New Tools Could Draw Institutional Investors Into The Crypto MarketAmid signs that the crypto market is maturing, startups like Tagomi are stepping in to meet the needs of large investors, building tools that look more like traditional financial technology.
Source: Forbes - 🏆 394. / 53 Read more »

Buybacks and ETFs are moving the market as investors shy away from single stocksStocks are riding high, but recent gains have mostly come through buybacks and inflows into ETFs while individual stocks are shunned. Good... more opportunity for the rest of us.
Source: CNBC - 🏆 12. / 72 Read more »

Why investors need to take care with China’s hot stock marketOur call of the day, from big China brokerage Citic Securities could be a warning in the canary for investors eager to get a piece of the world’s best-performing market this year.
Source: MarketWatch - 🏆 3. / 97 Read more »