Something cracked in private credit this month, and the men who manage systemic risk for a living are saying so. Goldman Sachs CEO David Solomon's just-released 2025 annual shareholder letter warns that concerns about private credit - including "underwriting quality or exposure to software companies that may be negatively affected by AI" - are "a reminder that the credit cycle has not been repealed." His predecessor Lloyd Blankfein went further on Bloomberg's Big Take podcast: "I don't feel the storm, but the horses are starting to whinny in the corral." JPMorgan has already voted with its balance sheet, marking down software company loans held as collateral by private credit funds and reducing borrowing capacity for those funds, before any actual defaults. "I'm shocked that people are shocked," said JPMorgan's Troy Rohrbaugh.
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