Archive · 3 Dec 2025
Raghuram Rajan Warns of Rising Private Credit Risks
Raghuram Rajan, a former governor of the Reserve Bank of India, recently spoke at an event in Singapore.
He warned that there is too much easy money available for lending, which can lead to problems.
He said that when lenders are too free with their money, risks start to build up.
Other important people in finance, like Jeffrey Gundlach and Jamie Dimon, have also expressed concerns about this.
They think that the private credit sector, which is not as strictly regulated as banks, could cause big problems in the future.
Rajan advised being more careful during this time.
Raghuram Rajan warned about excess liquidity and rising risks in the private credit sector at the Clifford Capital Investor Day in Singapore.
He noted that ample credit and the Fed's interest rate cuts can lead to risk buildup, requiring more caution.
Private sector profitability and AI success stories have created a sense that the lending boom will continue.
Rajan's concerns echo those of other finance industry executives following recent high-profile bankruptcies in the US.
The private credit sector is less regulated than traditional bank lending and has not been subjected to stress tests.
- Who
- Raghuram Rajan, former RBI governor and finance professor at the University of Chicago
- What
- Warning about rising risks in the private credit sector and the need for caution
- When
- Tuesday (specific date not mentioned)
- Where
- Clifford Capital Investor Day event in Singapore
- Why
- Due to excess liquidity, ample credit, and the Fed's interest rate cuts, which can lead to risk buildup
- Speaker
- Raghuram Rajan, former RBI governor and University of Chicago finance professor
- Event
- Clifford Capital Investor Day in Singapore
- Date
- Tuesday (specific date not mentioned)
- Other Concerned Figures
- Jeffrey Gundlach (DoubleLine Capital), Jamie Dimon (JPMorgan Chase & Co.)