Goldman CEO Solomon Sees No ‘Systemic Crisis’ in Credit Markets

Goldman CEO Solomon Sees No ‘Systemic Crisis’ in Credit Markets

Goldman Sachs Group Inc. Chief Executive Officer David Solomon downplayed concerns that have surfaced following the collapse of US firms First Brands Group and Tricolor Holdings, and said he doesn’t see any systemic risk looming in the credit market.

Goldman Sachs' Solomon plays down private credit fears

Top Wall Street executives have downplayed the likelihood of a private credit downturn sparking a wider economic crisis, despite a string of major lenders setting aside billions of dollars to manage potential defaults on their balance sheets. Goldman Sachs boss David Solomon dismissed the growing chorus of voices warning that tremors in the private credit market could evolve into a systemic crash, branding the spate of recent defaults “idiosyncr…

Neuberger: Recent credit stress a canary in the coal mine?

While idiosyncratic credit risk is beginning to emerge, signs of broader credit or systemic stress are still sparse. The recent collapse of First Brands and Tricolor Auto Group, together with loan losses among some US regional banks, have begun to stir fears over broader credit markets and spillover risks to other assets. To be sure, credit is an area we continue to watch closely, for good reason. Stress in corporate bond markets is often seen a…