Private credit is not banking, so a private credit unwinding would not cause the systemic ripple effects of a 2008-style banking crisis, though it would create significant pain for endowments and institutions directly exposed.
causalpending
Speaker
Aswath DamodaranEvidence Quote
“Private credit is not banking. So, in many ways when banks go down, the ripple effects are much more dramatic because the depositors were unintentionally part of a game they didn't want to play.”
Source
Aswath Damodaran: I Am More Cautious Than Ever— The Master Investor Podcast with Wilfred FrostCreated: 8/12/2026, 6:41:25 PM
My Notes
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