Private Credit Has a Weak Underwriting Discipline Problem
From The Credit Edge by Bloomberg Intelligence by Bloomberg
May 19, 2026 · 30 min
About this episode
The episode discusses the troubling loose underwriting standards in the private credit market and their implications.
Loose underwriting standards are increasingly troubling for private credit market participants, according to Bloomberg Intelligence. “This concern has been growing for a period of time,” David Havens, BI’s senior analyst for private credit, tells Bloomberg News’ James Crombie in this special episode of the Credit Edge podcast. Weak underwriting discipline was flagged by private debt market participants in a recent global BI survey, rising in prominence compared with a poll conducted in September. In addition, direct lenders face lingering pressure from retail redemptions at business development companies. “Headlines are still going to be negative, focused on that very small portion of the market — it’s becoming slightly infectious and weighing on the wealth side of the business,” says Paul Gulberg, a senior analyst who covers global banks and asset managers. The trio also discuss the drivers of private credit growth, loan valuations, the liquidity premium and fund fees. See omnystudio.com/listener for privacy information.
People in this episode
Host: James Crombie
Guest: David Havens
Topics covered
- private credit
- underwriting standards
- market trends
- loan valuations
- liquidity premium
- fund fees
Keywords
- private credit
- underwriting discipline
- Bloomberg Intelligence
- retail redemptions
- loan valuations
- liquidity premium
- fund fees
Mentioned in this episode
Organizations: Bloomberg Intelligence, Bloomberg News
More episodes of The Credit Edge by Bloomberg Intelligence
- Oaktree Says Boring is Beautiful In Dicey Private Credit Market · June 11, 2026 · 56 min
- Goldman Sachs Sees ‘Uncomfortable Tension’ in Credit Markets · June 4, 2026 · 46 min
- Veteran ABS Investor Sees ‘Max Uncertainty With Max Complacency’ · May 28, 2026 · 54 min
- Principal Sees High-Grade Downgrade Risk as Issuance Ramps Up · May 21, 2026 · 43 min
- JPMorgan Is Wary of Another Big Leap in AI-Related Spending · May 14, 2026 · 50 min
- HarbourVest Expects Private Credit Secondaries Volume to Double · May 7, 2026 · 51 min
Explore listener stats, chart rankings, contacts and more on the The Credit Edge by Bloomberg Intelligence podcast page.