Commentary

BlackRock’s plan to democratise private credit could backfire

Private credit could lose most of its advantages if retail investors get better access

Economists at the Bank for International Settlements say democratising access to private credit ‘may undermine the very features that have sustained its growth’
Economists at the Bank for International Settlements say democratising access to private credit ‘may undermine the very features that have sustained its growth’ Photo Illustration: hometowncd/Getty Images

Jamie Dimon is treated with such reverence these days that if he mentions what he had for breakfast it makes headlines. So when the JPMorgan boss recently suggested we may have reached “peak private credit”, it inevitably made waves.

Predictably, some of the coverage was a bit overexcited. Dimon was merely replying to a question about whether JPMorgan would follow other big firms in buying a private credit lender. 

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