--- title: "Jamie Dimon Warned Of 'Cockroaches' — Now Mohamed El-Erian Says More 'Bugs' Are Crawling Out In Private Credit" type: "News" locale: "en" url: "https://longbridge.com/en/news/278145811.md" description: "Economist Mohamed El-Erian warns of emerging risks in private credit markets, echoing Jamie Dimon's earlier 'cockroach' warning. He highlights issues like valuation gaps and liquidity strains, questioning whether these are mere 'cockroaches' or systemic 'termites.' El-Erian advises investors to monitor private credit's interaction with other risks, including potential AI bubbles and vulnerabilities in the bond market. Meanwhile, Blue Owl Capital faces significant losses, prompting discussions about the health of the private credit sector amid recent bankruptcies." datetime: "2026-03-06T17:29:51.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/278145811.md) - [en](https://longbridge.com/en/news/278145811.md) - [zh-HK](https://longbridge.com/zh-HK/news/278145811.md) --- # Jamie Dimon Warned Of 'Cockroaches' — Now Mohamed El-Erian Says More 'Bugs' Are Crawling Out In Private Credit **Mohamed El-Erian**, **Allianz** chief economic adviser, is pointing to widening cracks in private credit markets. He said the signs mirror **JPMorgan Chase & Co.** (NYSE:JPM) CEO **Jamie Dimon**‘s earlier “cockroach” warning — and more “bugs” are now in plain sight. ## **El-Erian Raises the Termite Question** El-Erian wrote on X on Friday that this week’s private credit news “echoes Jamie Dimon’s recent warning about ‘cockroaches’—the idea that early signs of excesses are likely to be followed by others.” He listed “valuation gaps and liquidity strains to poor underwriting and fraud” as the “bugs” now emerging. Then he sharpened the concern: “The big question for markets and the real economy is whether we’re just dealing with cockroaches… or are these termites posing systemic risks?” El-Erian said he suspects it isn’t a systemic termite issue alone. But he urged investors to watch how private credit interacts with other risks — including “elements of an AI bubble” and “vulnerabilities in certain segments of the global bond market.” > Cockroaches or Termites? The Private Credit Question: > This week's news from the private credit markets in advanced economies echoes Jamie Dimon's recent warning about "cockroaches"—the idea that early signs of excesses are likely to be followed by others. > From valuation gaps and… > > — Mohamed A. El-Erian (@elerianm) March 6, 2026 ## **Blue Owl Capital Becomes the Crisis Face** **Blue Owl Capital Inc.** (NYSE:OWL) is down over 34.59% year-to-date. Shares have fallen 48.27% over the past year. In February, Blue Owl announced it would liquidate $1.4 billion in assets to return capital to exiting investors. CEO **Craig Packer** called it a “strategic transaction.” ## **Dimon’s Warning and Lipschultz’s Clap-Back** Dimon likened credit bankruptcies to spotting a cockroach — if you see one, more are likely lurking. El‑Erian echoed the warning earlier in a CNBC interview, saying, "Cockroaches don't come in ones and twos." Blue Owl co-CEO **Marc Lipschultz** pushed back. Speaking at the CAIS Alternative Investment Summit, he quipped: “There might be a lot more cockroaches at JPMorgan.” He called broad concern “an odd kind of fear-mongering.” The debate was lit by the bankruptcies of **First Brands Group** and **Tricolor Holdings**, two events that rattled investors and slammed regional bank stocks. ## **Wider Cracks Across Private Credit** **BlackRock Inc.** (NYSE:BLK) slashed a private loan to Infinite Commerce from 100 cents to zero in just three months, per Bloomberg. That par-to-zero swing exposed the lag between reported valuations and real performance. **Apollo Global Management Inc.** (NYSE:APO) and **KKR & Co. Inc.** (NYSE:KKR) have also faced monthly losses as software-heavy portfolios draw scrutiny. **New York Life Investment**s, in a February report, said the sector remains prone to headline risk but maintained a constructive outlook. It called for investors to prioritize selectivity, strong underwriting, and disciplined exposure. _Image via Shutterstock_ ### Related Stocks - [OWL.US](https://longbridge.com/en/quote/OWL.US.md) - [PEX.US](https://longbridge.com/en/quote/PEX.US.md) - [OBDC.US](https://longbridge.com/en/quote/OBDC.US.md) - [PCR.US](https://longbridge.com/en/quote/PCR.US.md) - [PRIV.US](https://longbridge.com/en/quote/PRIV.US.md) ## Related News & Research - [Private credit roundup: Downtime and depreciation](https://longbridge.com/en/news/286562346.md) - [LIVE MARKETS-Short sellers crowd into Blue Owl as private credit woes mount](https://longbridge.com/en/news/286294105.md) - [Blue Owl Co-Founder Sells Off Final Piece Of $6 Billion Commanders Deal](https://longbridge.com/en/news/287111222.md) - [Institutions bought more private credit as individuals balked, filings show](https://longbridge.com/en/news/286602637.md) - [Is AI a bubble? 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