Are Credit Markets Signaling Trouble? Insights from Professor Edward Altman on Systemic Risks and Defaults in His Bloomberg Interview.
In today’s uncertain market, lenders are left wondering: Are credit conditions worsening? Professor Edward Altman, co-founder of Wiserfunding and creator of the Z-Score model for predicting bankruptcies, offers key insights in a revealing interview.
Professor Altman highlights that while risk premiums have risen, credit markets have remained resilient. However, defaults on bank loans are rising, with a 6% default rate on syndicated loans — a red flag not yet fully reflected in the broader market. He also challenges the view that the business cycle leads the credit cycle, arguing that credit trends often precede economic downturns.
Professor Edward Altman further discusses the growing private credit market and its potential to shield defaults from traditional models, while reassuring that systemic risk remains low.
For lenders navigating these complex dynamics, Professor Altman’s insights are invaluable.
Watch the full interview for a deeper understanding of what these trends mean for your lending strategy:
Join us for deeper insights into Private Credit
On April 9th, we’ll explore the crossroads of private credit—will growth continue, or are risks mounting? Lenders and asset managers must stay ahead in this evolving landscape. This webinar will provide you with the essential insights to navigate these challenges.
What’s in it for you?
• Edward Altman – Professor Emeritus of Finance at NYU Stern School of Business and Co-founder of Wiserfunding, will share expert insights on how the credit cycle is shaping the current business environment and the key economic trends you need to monitor.
• Mike McAdams – CEO of Pasadena Private Lending, will offer real-world perspectives on private market dynamics in 2025 and share his firsthand experience with credit risk management automation.
• Gabriele Sabato – CEO & Co-founder of Wiserfunding, will reveal exclusive data on how automation solutions are empowering lenders to succeed in 2025.
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