Private Credit Market Expected to Reach $4.9 Trillion by 2029
Written by Emily J. Thompson, Senior Investment Analyst
Source: CNBC
- Market Growth: The private credit market is projected to grow from $3.4 trillion in 2025 to $4.9 trillion by 2029, indicating rapid expansion in this sector, albeit with increasing associated risks.
- Industry Warnings: JPMorgan CEO Jamie Dimon cautioned that credit issues are rarely isolated, suggesting that potential risks in private credit could impact the broader financial system, especially following recent bankruptcies in the auto industry.
- Rising Default Risks: A report from Kroll Bond Rating Agency indicates that defaults among private loans are expected to rise this year, particularly as stress signs emerge among less creditworthy borrowers, potentially leading to greater financial instability.
- Increased Bank Involvement: Last year, bank loans to non-depository financial institutions reached $1.14 trillion, and with deregulation allowing banks to re-enter the private credit market, there are concerns that this could lead to lower underwriting standards and increased future credit problems.
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Analyst Views on JPM
Wall Street analysts forecast JPM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for JPM is 341.38 USD with a low forecast of 260.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
11 Buy
7 Hold
1 Sell
Moderate Buy
Current: 300.770
Low
260.00
Averages
341.38
High
400.00
Current: 300.770
Low
260.00
Averages
341.38
High
400.00
About JPM
JPMorgan Chase & Co. is a financial holding company. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. The Company operates through three segments: Consumer & Community Banking (CCB), Commercial & Investment Bank (CIB), and Asset & Wealth Management (AWM). Its CCB segment offers products and services to consumers and small businesses through bank branches, ATMs, digital and telephone banking. Its CIB segment consists of banking and payments and markets and securities services, and offers a suite of investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. AWM segment offers investment and wealth management solutions. It offers multi-asset investment management solutions, retirement products and services, brokerage, custody, estate planning, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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