Dmytro Kharkov

Private credit risks due to pricing opacity, Meb Faber warns

Private credit risks due to pricing opacity, Meb Faber warns
Private credit safety questioned by Faber

Meb Faber highlights concerns about the safety of private credit investments. He references Lloyd Blankfein, noting that investors may be relying too heavily on asset valuations that do not fluctuate frequently, which can create a false sense of security.

Faber emphasizes that the perceived safety of assets should not be based solely on their illiquidity or difficulty in establishing fair value.

Faber has previously discussed how large amounts of unsophisticated capital can appear suddenly in markets and influence trends, as seen in his comments on periodic surges of blind capital. He has also highlighted the importance of balancing stoic detachment with emotional awareness when approaching stock investing. These themes provide additional context for his warnings on asset valuations and risk perception.

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