00:00Recently, the concern has been in the financial community about something called private credit.
00:06So is that legitimate concern? Is private credit about to crumble in some way?
00:10No, I don't think private credit's about to crumble.
00:12And when you look at private credit, when you just look at the size of private credit,
00:15it's not big enough to be a systemic risk, broadly the way we think about systemic risks that existed in
00:22the past.
00:23But it's credit.
00:24And there's been a huge amount of money that's flown into these products, both institutional and retail.
00:31And we've all seen this in the past when there's a lot of money that needs to get invested
00:36because that's the only way that these firms get paid is to actually invest.
00:42It doesn't always work out well.
00:44And we're in an area where we've been in this bull market for a long period of time.
00:47We haven't seen any recession in over a decade.
00:52You will see credit deterioration at some point in time.
00:56And I wouldn't paint the picture of private credit separately from bank credit.
01:01I would say that in both instances, there are people that do it really well,
01:06that are really conservative in how they do it.
01:08They understand their companies.
01:09And there are those that have piled in that are just looking for growth,
01:13looking to deploy assets, and they'll have problems.
01:16But again, some of the big names out there that we all know, they do it really, really well.
01:21They're really smart.
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