TCW CEO Koch Warns ‘Major Accidents’ Ahead in Private Credit (1)

TCW Group President and Chief Executive Officer Katie Koch said cracks are starting to show in the private credit market and that investors should prepare for “major accidents” in the red-hot sector over the next 12 to 18 months.

Koch said in an interview at the Milken Institute Global Conference in Beverly Hills on Monday that she still thinks the asset class is “one of the great investment opportunities” over the next decade, but only if investors approach it “in the right, conservative way.”

TCW Group CEO Katie Koch says investors should prepare for “some accidents ahead” for private credit markets due to the rise in interest rates. “I think it also may be one of the great investment opportunities over the next decade, if you approach it in the right conservative way,” she says on Bloomberg Television. “But we are going to see some major accidents ahead in private credit.”

Source: Bloomberg

Koch, whose firm manages roughly $215 billion, said most private credit firms were ...