JPMorgan CEO Jamie Dimon downplays private credit concerns: 'Not particularly worried'

JPMorgan Chase (JPM) CEO Jamie Dimon shrugged disconnected worries astir the backstage recognition assemblage connected Tuesday, saying that the concerns weren’t “systemic.”

“It astir can't beryllium systemic astatine that size comparative to thing else,” Dimon said during a Tuesday net telephone with analysts.

“I’m not peculiarly disquieted astir it,” helium added.

Dimon said that during a wider recognition downturn, immoderate lending concern “will astir apt travel backmost to banks.”

The backstage recognition manufacture has grown rapidly successful the years pursuing the fiscal crisis, owed successful ample portion to US banking reforms that curtailed riskier lending.

Over the past quarter, backstage recognition funds person seen unprecedented levels of capitalist redemption requests, spurred a increasing fig of managers to bounds withdrawals to 5%.

The infinitesimal coincides with rising interest immoderate backstage indebtedness funds clasp a batch of loans tied to bundle companies astatine hazard of disruption from advances successful artificial intelligence.

Big banks not lone lend to these funds, but they besides negociate immoderate of their own.

JPMorgan said earlier this twelvemonth that the slope carries astir $50 cardinal of vulnerability to the backstage recognition industry.

On Tuesday different banks shared their vulnerability arsenic well. Wells Fargo said it holds astir $36 cardinal vulnerability to backstage recognition firms. Citigroup said vulnerability to backstage recognition was $22 cardinal successful the 4th quarter.

David Hollerith covers the fiscal sector, ranging from the country's biggest banks to determination lenders, backstage equity firms, and the cryptocurrency space.

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