Private Credit Is Next Crisis for Financial Markets, Gundlach Says

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00:00The most ridiculous argument of all for private credit has been private credit belongs in every

00:05portfolio because it lets you sleep at night because it helps you ride out the volatility

00:10of your public credit. Again, that's just a repackaging of the volatility. If you don't

00:16market to market, there's no volatility. But if the price goes from 100 to zero in a matter of

00:21a few weeks, there's something untoward is going on. And so I'm very, very negative on those types

00:29of non-transparent markets. It reminds me, I've been saying this for probably two years

00:35now, that the next big crisis in the financial markets is going to be private credit. It has

00:43the same trappings as subprime mortgage repackaging had back in 2006. Now it took a couple of years

00:52for it to totally unravel. So this stuff doesn't happen in a week or a year even. But I'm very

00:58negative on that.