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Blackstone's Schwarzman Dismisses Private Credit Bankruptcy Concerns

12/12/2025

Summary

Story summary

In Abu Dhabi on December 9, Stephen Schwarzman, Chief Executive Officer of Blackstone Inc., dismissed market concerns that private credit was linked to auto-sector bankruptcies, noting banks conducted due diligence and underwrote the deals.
He said the collapses of First Brands and Tricolor did not implicate private credit.
Investors and economists caution that the private credit market, part of the shadow banking system, could pose risks similar to the 2008 housing crash.

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Story summary

In Abu Dhabi on December 9, Stephen Schwarzman, Chief Executive Officer of Blackstone Inc., dismissed market concerns that private credit was linked to auto-sector bankruptcies, noting banks conducted due diligence and underwrote the deals.
He said the collapses of First Brands and Tricolor did not implicate private credit.
Investors and economists caution that the private credit market, part of the shadow banking system, could pose risks similar to the 2008 housing crash.