Private Credit Concerns in Context

Exchanges

Goldman Sachs

Business

4.3 • 1.1K Ratings

🗓️ 23 March 2026

⏱️ 31 minutes

🔗️ Recording | iTunes | RSS

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Summary

Goldman Sachs’ Alex Blostein and Vivek Bantwal discuss the market sentiment, fundamentals, and the outlook for the private credit sector. This episode was recorded on March 19th and 20th. The opinions and views expressed herein are as of the date of publication, subject to change without notice, and may not necessarily reflect the institutional views of Goldman Sachs or its affiliates. The material provided is intended for informational purposes only, and does not constitute investment advice, a recommendation from any Goldman Sachs entity to take any particular action, or an offer or solicitation to purchase or sell any securities or financial products. This material may contain forward-looking statements. Past performance is not indicative of future results. Neither Goldman Sachs nor any of its affiliates make any representations or warranties, express or implied, as to the accuracy or completeness of the statements or information contained herein and disclaim any liability whatsoever for reliance on such information for any purpose. Each name of a third-party organization mentioned is the property of the company to which it relates, is used here strictly for informational and identification purposes only and is not used to imply any ownership or license rights between any such company and Goldman Sachs. A transcript is provided for convenience and may differ from the original video or audio content. Goldman Sachs is not responsible for any errors in the transcript. This material should not be copied, distributed, published, or reproduced in whole or in part or disclosed by any recipient to any other person without the express written consent of Goldman Sachs. Disclosures applicable to research with respect to issuers, if any, mentioned herein are available through your Goldman Sachs representative or at http://www.gs.com/research/hedge.html Goldman Sachs does not endorse any candidate or any political party. Copyright 2026. All rights reserved. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	In what seems like a matter of months, private credit has gone from one of the hottest asset classes to perhaps one of the coldest.
0:13.3	Concerns that the rapid growth in private credit funds has come at the expense of underwriting standards,
0:18.8	and that these funds are far too exposed to the software
0:22.1	companies now in the crosshairs of AI innovation have precipitated this sentiment shift.
0:28.0	And as retail investors rush to exit these funds and run up against redemption limits, there
0:32.6	are serious questions about the private credit push to access flows from retirement accounts.
0:37.9	So what's really going on in private credit?
0:40.2	And what will it take to restore faith in this asset class?
0:43.4	I'm Alison Nathan, and this is Goldman Sachs exchanges.
0:46.2	A little bit later, I'll be speaking to Vivek-Bantanwall, Global Co-head of Private Credit
0:49.9	in Goldman Sachs Asset Management.
0:51.8	But let's start this episode with Alex Blasstein, who covers U.S. asset managers and other financial companies for Goldman Sachs Asset Management, but let's start this episode with Alex Blasstein, who covers
0:54.6	U.S. asset managers and other financial companies for Goldman Sachs research. Alex, welcome back
0:59.5	to the program. Great. Thank you for having me. So Alex, let me take a stab at trying to summarize
1:04.5	this very bearish narrative we have right now around private credit. The idea is that private credit
1:10.6	firms took in a lot of money
1:12.8	and they rushed to deploy it as quickly as possible, which meant there were some frauds. They
1:18.4	maybe have over allocated into potentially risky sectors. Software, which we have discussed
1:23.3	on this podcast, looks vulnerable. So there's a lot of factors playing into some negativity around the space. Did I get it right? Yeah. And is there any truth to any of this, most importantly? Yeah. Well, look, this is certainly the narrative. But like with anything, there's a lot of nuance to it. And I think it is really important to unpack. What's actually going on versus what are the headlines?
1:45.5	And then ultimately, what are the risks?
1:46.9	Because there's definitely some valid risks in some of the things that you mentioned.
1:50.1	So there are really three big sort of issues that I think the market is grappling with.
	...

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