Latest news with #assetclass
Yahoo
2 days ago
- Business
- Yahoo
Why Jamie Dimon says we ‘may have seen peak private credit'—and why you should care
On July 15, JPMorgan Chase CEO Jamie Dimon sent ripples through the financial world by declaring, 'You may have seen peak private credit.' The comment, made during the bank's second-quarter earnings call, came with a hedge, as Dimon adding 'a little bit' at the end. Still, Dimon is one of the most successful bankers in generations, someone Fortune referred to nearly 20 years ago as the 'most watched, most discussed, most loved, and most feared banker in the world.' If he's signaling the peak of a $1.6 trillion asset class, it's notable. Private credit refers to loans made by non-bank lenders—such as private-equity firms, asset managers, and hedge funds—directly to companies, and it's exploded in the decade-plus since the financial crisis. Marquee names in the space have grown growing to titanic proportions: Think KKR, Blackstone, and Ares Management. These players often operate outside of traditional regulatory frameworks in transactions that are too risky or unconventional for traditional banks. As banks like Dimon's have been forced by regulations to reduce corporate lending, private credit has become a go-to source for everything from leveraged buyouts to business expansions, offering attractive returns but also carrying higher risks. Dimon's remarks also came in response to an analyst's question about whether JPMorgan itself is looking to deepen its own investments in the private-credit space, as reported by The Wall Street Journal. JPMorgan had a chance to own a private-credit operation but went in another direction in 2008, reportedly to Dimon's chagrin. 'I would say it's not high in my list,' Dimon said about JPMorgan buying a private-credit firm, adding he would have a 'slight reluctance,' depending on the acquisition target. Then he offered a nuanced explanation, reiterating 'credit spreads are very low.' Dimon was suggesting that credit spreads—the extra yield lenders demand for risk—have shrunk to levels that no longer compensate for potential losses. Coupled with looser underwriting and increased leverage, Dimon implicitly suggested we're seeing echoes of risk cycles that preceded past credit busts. In flat terms: Too much capital is chasing too few quality opportunities, driving up risk while driving down returns. Later in the day, as Dimon taped an episode of the 'Acquired' podcast at Radio City Music Hall, he said private credit is 'one place that people worry has unknown leverage.' JPMorgan declined to comment beyond Dimon's comments on the earnings call. Why it matters Dimon's remarks are notable for several reasons, ranging from the impact on corporate borrowing to macroeconomics. A peaking private-credit market suggests 'easy money' is ending—businesses may soon face stricter lending standards and higher costs, which could dampen expansion or M&A activity. Many pension plans, endowments, and affluent investors have loaded up on private credit for yield. If defaults rise or liquidity dries up, retirement plans and wealth portfolios could suffer unexpected losses at inconvenient moment in the economic cycle, or worse. Private credit isn't subject to the same regulations or oversight as banks, raising contagion risk if the market seizes up. Dimon is essentially signaling that what looks like healthy innovation can morph into a vulnerability if risk is mispriced en masse. Dimon's warning also comes in a context of elevated asset prices and policy uncertainty, when monetary policy is in flux and economic growth is cooling—a recipe for for a credit accident cocktail. The impact on your business A peak for private capital would signal tighter lending ahead: Companies—especially mid-sized and riskier firms—may find it harder or more expensive to borrow. This could slow expansion, hiring, and deal-making. As private lenders pull back, traditional banks may regain market share, but with stricter terms and higher scrutiny. Many pension funds, endowments, and even high-net-worth individuals have flocked to private credit for its high yields. If the market cools, future returns may disappoint, affecting retirement savings and investment portfolios. Private-credit investments are less liquid than stocks or bonds. In a downturn, investors may struggle to cash out or face losses if defaults rise. Most ominously, a wave of defaults in private credit could spill over into the broader economy, especially if highly leveraged companies start to fail. Dimon's warning is a reminder that financial innovation can sow the seeds of instability if left unchecked. Dimon's warning is a signal that the era of easy money and rapid growth in the private-credit market may be ending. For executives, business owners, and upper middle class investors, it's a cue to reassess borrowing strategies, investment allocations, and risk management. If Wall Street's hottest trend cools, it could impact everything from business expansion to retirement security. For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. This story was originally featured on
Bloomberg
4 days ago
- Business
- Bloomberg
Vanguard Goes Big on Crypto, Thanks to Index Boom It Unleashed
Vanguard Group Inc. executives have made their opinions on crypto clear, calling it an "immature asset class." Yet thanks to the cold logic of index investing, the $10 trillion money-management giant is now the biggest backer of Strategy, the software firm that famously reinvented itself as a proxy for Bitcoin and became a poster child for the industry's ambitions. (Source: Bloomberg)
Associated Press
18-06-2025
- Business
- Associated Press
Dr. Patrick Pilati Joins National Rugby Football League as Strategic Advisor
Advancing Rugby as a New Asset Class MINNEAPOLIS, MINNESOTA / ACCESS Newswire / June 18, 2025 / The National Rugby Football League (NRFL) is proud to announce that Dr. Patrick Pilati, a globally recognized expert in behavioral finance, institutional capital strategy, and financial architecture, has joined the league as a strategic Pilati Dr. Pilati will work alongside the NRFL's leadership to help position the league at the intersection of elite sports, financial engineering, and capital markets. His advisory role will center on helping the NRFL evolve into a scalable asset class-supporting its long-term vision of transforming professional rugby into a structured financial product accessible to institutional stakeholders, family offices, and global markets. 'Dr. Pilati brings a strategic lens that's uniquely suited to our mission,' said Michael Clements, CEO of the NRFL. 'His global experience in financial innovation and market structuring will help us build a foundation where rugby can thrive as both a premier sport and a dynamic economic engine.' The NRFL is pioneering a next-generation media and sports property in North America by commercializing rugby-one of the world's most popular yet untapped sports markets on the continent. Combining high-performance sport, immersive digital content, and cutting-edge fan engagement strategies, the NRFL is crafting a premium platform designed for long-term commercial monetization. Dr. Pilati, known globally for scaling fintech, commodities, and alternative investment ventures, brings more than two decades of executive leadership to the role. His career spans over $80.6 billion in cross-sector global transactions. Most recently, in 2024-2025, he spearheaded the financial transformation of companies in the Gulf Cooperation Council (GCC) region, scaling valuations from $400 million to $8.1 billion in under 12 months through advanced securitization strategies and behavioral capital modeling. His proprietary financial models have been used to reshape asset classes from digital banking to luxury commodities. 'The NRFL represents a rare opportunity to architect an entirely new asset category-where sport, finance, and technology converge,' said Dr. Patrick Pilati. 'By applying institutional-grade financial modeling, behavioral economics, and asset securitization principles, we can help shape rugby not just as a sport, but as a scalable, investable platform with long-term value for global markets.' This partnership signals a unique evolution in how professional sports franchises are conceptualized-not simply as entertainment entities, but as structured financial instruments with real-asset potential, yield curves, and integrated value chains. For more information, visit or contact the NRFL Media Relations team. Contact Information Steve Ryan Managing Director [email protected] 952-835-4364 SOURCE: National Rugby Football League press release
Bloomberg
21-05-2025
- Business
- Bloomberg
Earl Patton on the Business of Sports
Earl Patton, Managing Partner of Rumble Venture Capital speaks with Romaine Bostick and Scarlet Fu about investing in sports as an asset class. (Source: Bloomberg)
Yahoo
17-05-2025
- Business
- Yahoo
Anthony Scaramucci Says Once Bitcoin Hits $500,000 It Will Be Considered An Asset Class Just Like Gold
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Anthony Scaramucci, the founder and CEO of SkyBridge Capital, said Wednesday that Bitcoin (CRYPTO: BTC) would be deemed a full-fledged asset class once it hits $500,000 a piece. What Happened: The Bitcoin bull, while speaking at CoinDesk's Consensus 2025 conference, stated, '$3 trillion is like a mag 7 stock, $20 trillion is an asset class. So if you tell me that Bitcoin can get to $500,000, people will be writing stories that Bitcoin is an asset class.' Scaramucci emphasized the importance of Bitcoin matching the market capitalization of gold, which is presently over $21 trillion, in order to be recognized as a separate asset class. Trending: — no wallets, just price speculation and free paper trading to practice different strategies. Scaramucci suggested that the ongoing influx of capital into the Bitcoin market via exchange-traded funds and the adoption of strategies following Strategy Inc.'s (NASDAQ:MSTR) lead presented an optimistic future for the apex cryptocurrency. 'We may not actually be bullish enough," he said. Despite the political risks associated with crypto becoming a contentious issue in U.S. politics, Scaramucci sees the incentives aligning for bipartisan support. He added, 'If you get bitcoin to $500,000, people won't just say it's an asset class—they'll treat it like one.' Why It Matters: Scaramucci's bullish outlook aligned with his previous statements. Earlier this week, he said that Bitcoin was undergoing a structural transformation, evolving from a volatile tech-aligned investment to a maturing global asset more akin to digital gold. Scaramucci has mixed feelings regarding President Donald Trump's cryptocurrency policies, asserting that the healthy developments around legislation and regulatory clarity were marred by his family's involvement in the space. Scaramucci has been vocal about his Bitcoin support, revealing previously that 70% of his wealth is tied up in the leading cryptocurrency. Read Next: New to crypto? Get up to $400 in rewards for successfully completing short educational courses and making your first qualifying trade on Coinbase. A must-have for all crypto enthusiasts: Sign up for the Gemini Credit Card today and earn rewards on Bitcoin Ether, or 60+ other tokens, with every purchase. Photo Courtesy: Al Teich On Send To MSN: Send to MSN This article Anthony Scaramucci Says Once Bitcoin Hits $500,000 It Will Be Considered An Asset Class Just Like Gold originally appeared on
