JPMorgan CIO Michele Disagrees With Miran, Says Credit Is 'Too Loose'

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00:00Governor Myron, when he was on the show earlier today, pointed to the private credit markets as

00:04harboring some of the risk that otherwise would be visible in public markets, saying that it

00:09isn't marked to market in any kind of current level. You're seeing a lot of tech investment

00:13there. Are you concerned that we're seeing the best of the bunch in the public markets,

00:18but there's a lot of other stuff that just isn't as visible that has seen some deterioration?

00:22When I heard that comment that private credit is a symptom that credit conditions are too

00:31tight, I felt like I was having an out-of-body experience. Because I think myself and the

00:38market broadly believe that what we've seen with a handful of issuers, that credit conditions are

00:45too loose. There's such an overabundance of liquidity out there that the marginal borrower

00:52with a questionable business model can access funding. Can it go on forever? I always say

00:59a rolling loan gathers no loss. And at some point, the weak business model, the weak borrower

01:04will be exposed. I think we've seen some of that. I think what we're actually seeing is

01:10credit conditions are quite loose. And perhaps it is in the private credit space. I don't think

01:15that they're too tight.