Cockroaches or Termites? The Private Credit Question: This week’s news from the private credit markets in advanced economies echoes Jamie Dimon’s recent warning about "cockroaches"—the idea that early signs of excesses are likely to be followed by others. From valuation gaps and liquidity strains to poor underwriting and fraud, more "bugs" are coming out of the woodwork. The big question for markets and the real economy is whether we're just dealing with cockroaches... or are these termites posing systemic risks? I suspect that, on its own, it's not a termite issue. But keep an eye on private credit's interactions with other market excesses (elements of an AI bubble, vulnerabilities in certain segments of the global bond market, etc.). More to follow. #economy #markets #privatecredit