The Prof G Pod with Scott Galloway The Risks of Private Credit, How to Mentor Struggling Young Men, and Surviving Layoffs
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Sep 19, 2025 Explore the rapidly growing private credit market and its potential risks to the economy. Learn how to connect with struggling young men by tapping into their interests and providing supportive role models. Discover effective strategies for leadership in the wake of layoffs, including how to volunteer for responsibilities and make yourself the top choice for promotions. Scott delivers insightful advice on navigating these contemporary challenges with confidence and purpose.
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Private Credit Growth Masks Rising Risk
- Private credit has exploded from $250B in 2010 to $1.7T in 2024 with projections above $2.5T by 2027.
- Rapid inflows mean more capital chasing fewer deals, lowering spreads and masking rising credit risk.
Thin Spreads Create A Fragile Bubble
- Falling returns force private credit funds into riskier loans and thinner spreads that may not reflect borrower creditworthiness.
- When an economic bump arrives, defaults could cascade and trigger a downward economic spiral.
Borrow Now If Your Company Qualifies
- If you're a private company, current conditions make it a reasonable time to borrow on comparatively good terms.
- Take advantage of low-cost private credit now but remain aware of potential future tightening if defaults rise.