Private Credit Is Not a Financial Crisis in the Making: Essay

Seventeen years ago and change, Lehman Brothers collapsed, setting off a global financial crisis. For those of us who lived and blogged through it, the Great Recession (as it was known in the US) is seared into our memory, and no one wants to relive it. That’s why we’re so attuned to any Wall Street phenomena that might trigger another financial crisis: the AI bubble, perhaps, or the trillions of dollars in opaque credit instruments known as private credit.

Less vivid in the collective memory is the dot-com crash of 2000. It felt seismic at the time, but with hindsight, ...