JPMorgan Chase CEO Jamie Dimon has injected caution into financial markets with a stark warning about the private credit sector. In his annual shareholder letter, Dimon cautioned that private credit defaults could rise significantly during the next credit cycle due to modestly weakening lending standards across the industry. This comes as investors rush to redeem funds from private investment vehicles, triggering a mini-panic despite fund managers insisting the alarms are overblown.

Dimon’s perspective offers a sobering counterpoint to the financial press’s often dire predictions.