economy
March 12, 2026
This one major bank is safe from a private credit crisis, says top industry analyst
Mike Mayo noted that JPMorgan has had revenue growth roughly twice that of the industry this decade, reducing any need to stretch for riskier deals.
TL;DR
- JPMorgan is expected to withstand growing stress in the private credit market.
- Mike Mayo, a top banking analyst, believes JPMorgan's risk management is active and not indicative of looming losses.
- The private credit industry is facing increased scrutiny due to rapid growth, riskier borrowers, and complex loan structures.
- JPMorgan's substantial revenue growth has reduced its need to pursue riskier deals compared to the industry.
- The bank typically uses senior financing structures for private credit loans, which have historically low losses.
- Large, diversified banks like JPMorgan are considered better equipped to handle complex credit lending than smaller institutions.
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