.png)
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon used his bank’s losses from auto lender Tricolor Holdings to say there’s never just one cockroach — a quip some of his nonbank rivals have taken as a shot at them.
Blue Owl Capital Inc. boss Marc Lipschultz fired back, saying the issue was in loans that banks led, so Dimon should be scouring his own books if he wants to squash more bugs.
Lipschultz’s remarks gave voice to the sentiments of a swath of private credit executives. They’ve privately complained that sloppy diligence from banks on Tricolor and car-parts supplier First Brands Group are instead being held up as evidence of growing risks enabled by newer players muscling into lending.
“There are people who have meaningful, parochial interests in the industry not continuing to grow and succeed,” Lipschultz said of the scorn heaped on private-market players. “Blackstone’s market cap exceeds the market cap of most financial institutions in the world today. It’s not as if that’s not coming from someone, and of course those people don’t like it.”
The bickering underscores what’s at stake as a tidal wave of change sweeps across the financing landscape. Banks are being forced to cede ground or learn to live alongside upstart lenders, whether they like it or not.
It risks disrupting a delicate detente over the past few years, as rapidly growing private credit firms have taken some business from banks’ leveraged loan desks, but have also become some of their biggest clients as well as occasional partners.
The clash comes at a time when “there’s land mines starting to go off everywhere,” according to Akshay Shah, who runs distressed-debt firm Kyma Capital.
“Marc is saying it’s in the banking corner, and Jamie might say it’s elsewhere,” he said. “I would say it’s going off in both corners.”
And there are plenty of distressed players out there who can sift through the private credit blowups or the syndicated loan blowups, according to Shah..._________________
“Where Jamie is more right, is in public markets those cracks are harder to paper up,” he said.
No comments:
Post a Comment