Private credit faces challenges but not another historic crisis, Gunjan Banerji argues

Private credit faces challenges but not another historic crisis, Gunjan Banerji argues
Private credit risks not like 2007–09

Private credit concerns are unlikely to result in a crisis comparable to the events of 2007–09, according to Gunjan Banerji.

Banerji notes that crises remain unpredictable by nature, but points out that the magnitude of the 2007–09 financial disruption makes a recurrence of similar scale improbable.

Banerji has previously flagged concerns in private-market asset pricing, citing John Zito of Apollo’s view that private-equity valuations are inaccurate. Separately, about 2.2% of Zillow rental listings in November were previously for sale, the highest since late 2022 as mortgage rates rose, according to recent data reviewed by Banerji. These observations add context to ongoing monitoring of credit and housing trends.

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