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Markets Score 65 Bearish

Oaktree BDC Chief Warns of Heightened Risk in Private Credit and CRE Markets

Apr 02, 2026 17:39 UTC
BDC, CREE, ^VIX
Medium term

Armen Panossian, co-CEO of Oaktree Capital Management, expressed concerns about excessive risk-taking in private credit and commercial real estate sectors. He highlighted potential implications for market stability.

  • Armen Panossian of Oaktree Capital Management warns of excessive risk-taking in private credit and commercial real estate.
  • US banks are delaying CRE challenges through loan extensions and debt restructuring.
  • Private credit sector faces scrutiny over risk appetite and due diligence.
  • Market volatility, as indicated by the VIX index, remains elevated.
  • Potential implications for financial institutions and real estate developers with exposure to these sectors.

Armen Panossian, co-chief executive officer of Oaktree Capital Management LP, voiced concerns about excessive risk-taking in the private credit and commercial real estate markets during a Bloomberg Television interview in London on June 30, 2025. The warning comes amid growing scrutiny of leveraged lending and asset valuations in the wake of recent market volatility. Panossian, a seasoned investor with deep expertise in alternative assets, noted that US banks are deferring challenges in commercial real estate by extending loan maturities and restructuring debt. This approach, he argued, may delay rather than resolve underlying structural issues. The private credit sector, which has seen significant growth in recent years, is now facing questions about its risk appetite and due diligence practices. Investors are closely watching how these dynamics might affect broader market stability, particularly in light of elevated volatility as measured by the VIX index. Financial institutions and real estate developers with exposure to these sectors could face heightened pressure as lenders reassess risk profiles and regulatory oversight intensifies.

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