Jeffrey Gundlach Warns of ‘Garbage Lending’ as Private Credit Booms

Asset Deal Type Audience Use Case Cautionary Direct Lending For Fund Managers Institutional Investors Market Macro Trend Participant Sentiment Momentum

The Punchline

Jeffrey Gundlach highlights concerns over rampant ‘garbage lending’ in the private credit market, recommending a cautious stance that prioritizes cash holdings.

Why You Should Read This

Understanding Gundlach’s insights is crucial for making informed investment decisions in a potentially overvalued credit market.

Who This Is For

This article is pertinent for institutional investors, credit analysts, and fund managers who are navigating the private credit landscape.

Investor Implications

Investors may need to reevaluate their exposure to private credit and consider increasing liquidity to safeguard their portfolios amid these market conditions.

Read the Full Article

For complete coverage and additional details, visit the original article published by Bloomberg.

View Original Article

Bloomberg.com

December 10, 2025

Allspring Global CEO on Launching ETFs, Private Credit

Kate Burke, CEO of Allspring Global Investments, says most individual investors will continue to keep the bulk of their allocations in public markets. She tells Romaine Bostick and Katie Greifeld on “The Close” that A...

Fundraising Trends Institutional Investors +3

Financial Times

December 9, 2025

In a tough year, private credit bosses are pointing fingers

Firms like Apollo find it hard to shake narratives formed by legacy private equity and distressed debt operations

Asset Deal Type Distressed Debt +2

Reuters

December 9, 2025

US private credit defaults to ease in 2026, but fragility to persist, says BofA

Private credit defaults are set to edge lower next year as interest rates drop, strategists at BofA Global Research said, but warned that the red-hot sector remains among the most fragile parts of the U.S. credit market.

Asset Deal Type Default Rates +4

About This Source

Bloomberg https://www.bloomberg.com/