Jim Chanos

erodes over time, they begin to believe things that are too good to be true because there's pressure to put investors' money to work.

And I think some of that's happening now in private credit.

Well, we haven't seen it yet, as you say.

Credit spreads are still almost record, record lows.

So people are still partying.

You know, if the punch bowl is being taken away, only a couple of people may have noticed it yet.

But so far, it's still partying like it's 1999 in the credit markets for the most part.

Yeah, there's two things that bother me.

The way private credit is being sold to investors, and I sit on investment committees, so I see this.

And really, it's one of these too-good-to-be-true type promises.

We're going to give you senior debt exposure, often secured somehow, but with equity rates of return, double-digit type returns, which makes you wonder about the underlying credits themselves.

That's number one.

And then...

Related to that is how much leverage is being used within the vehicles to juice the equity-like rate of return.

And then the other thing that's concerning to me is the explosion now in captive regulated subsidiaries by the largest

largest players in this area, owning insurance companies.

And where there really isn't a true arm's length difference between the people buying the credit and the people selling the credit to them.

And that is worrisome.

That's something we saw in the Drexel days, by the way.

One of the things that