The Coming Credit Crunch

Bret JensenInvesting Group LeaderFollow5ShareSavePlay(7min)Comment(1)SummaryOutside the escalating regional war in the Middle East and the associated surge in energy prices, a key investor worry right now is the accelerating deterioration in private credit markets.Private credit market stress is broadening beyond software, potentially impacting funds exposed to fintech-originated consumer and small business loans.JPMorgan has cut funding to private credit funds and marked down loans, further pressuring the sector’s liquidity and valuations.Looking for a helping hand in the market? Members of The Biotech Forum get exclusive ideas and guidance to navigate any climate. Learn More » OlekStock/iStock via Getty Images We start this article with a recent and prudent observation from famed bond manager Jeffery Gundlach this week on the mechanics of Wall Street: 2005-2006: “Hey! We found a way to turn BBB ratings intoThis article was written byBret Jensen57.12K FollowersFollowBret Jensen has over 13 years as a market analyst, helping investors find big winners in the biotech sector. Bret specializes in high beta sectors with potentially large investor returns.Bret leads the investing group The Biotech Forum, in which he and his team offer a model portfolio with their favorite 12-20 high upside biotech stocks, live chat to discuss trade ideas, and weekly research and option trades. The group also provides market commentary and a portfolio update every weekend. Learn More.Analyst’s Disclosure: I/we have a beneficial long position in the shares of UPST either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I have a small holding in UPST within covered call positionsSeeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.