Insights Now Alternative Realities: How to evaluate private credit risks
9 snips
Feb 26, 2026 Brian Coleman, Co-Head of Investments for J.P. Morgan Asset Management’s Private Credit Solutions Group, brings decades of credit investing experience. He explains why private credit grew and how yields compare to public markets. He covers risks like sector concentration and AI-vulnerable software, plus the appeal of asset-backed finance and where distressed or special situations fit into strategies.
AI Snips
Chapters
Transcript
Episode notes
Learning Credit From The Financial Crisis
- Brian Coleman began focusing on credit after the global financial crisis and hunted distressed debt opportunities.
- That period was a real education in mistakes made pre-crisis and shaped his cautious lending approach.
Why Private Credit Filled A Postcrisis Gap
- Private credit is privately negotiated lending by non-bank institutions, typically bilateral and held to maturity rather than traded.
- It grew after the GFC because banks faced higher capital charges and pulled back, creating a lending gap filled by private lenders.
Capital Flows Are Compressing Direct Lending Spreads
- Flows into direct lending, especially retail into a few large managers, have pressured spreads and documentation due to muted M&A activity since 2022.
- That creates pockets where too much capital chases too few deals, tightening terms for lenders.