A sneaky little cull from the Financial Times this week on the world of Private Credit. Some in long pants might recall the former Citi CEO calling the top in 2007. And some may also recall the Cove Street suggestion that Private Credit is the most overcrowded asset class in…a long time. Investing new money into credit at large today is an excellent idea. It’s the hundreds of billions that were invested over the past x years at zero rates and zero covenants that will prove to be the problem.

In a radical break from their business model of paying fines, lobbying and advising CEOs how to wreck their careers through stupid M&A deals, several banks are looking to break into the hot new phenomenon of lending money to companies.

The latest is Citi, which has a distinguished history of identifying and embracing exciting new financial opportunities. From Bloomberg overnight:

Citi Is in Talks to Start New Private Credit Strategy by Early 2024
Citigroup Inc. is in discussions to start a new direct-lending strategy by early January, the latest in a series of bank efforts to gain a foothold in the booming $1.6 trillion private credit market.