Dimon Says ‘Could Be Hell to Pay’ If Private Credit Sours

Jamie Dimon said he expects problems to emerge in private credit and warned that “there could be hell to pay,” particularly as retail clients gain access to the booming asset class.

“Do you want to give access to retail clients on some of these less liquid products? Well the answer is — probably, but don’t act like there’s no risk with that,” the JPMorgan Chase & Co. chief executive officer said at an industry conference Wednesday. “Retail clients tend to circle the block and call their senators and congressmen.”

JPMorgan and other lenders have been competing with the $1.7 trillion private-credit industry, with giants such as Apollo Global Management Inc. taking on ever-larger deals. But banks have sought to make inroads of their own: Dimon’s company has earmarked more than $10 billion of its own balance sheet for direct lending, and is putting together a co-lending partnership. Its asset manager is also on the hunt to buy a private-credit firm, Bloomberg reported last week.