2026-03-10T17:04:24.856Z
- Jane Fraser said on Tuesday she was “optimistic” about private credit risks.
- He said problems could arise once the war in Iran dies down, as well as concerns about private sector confidence and AI.
- Fraser said “duration” and “sustainability” are important factors when it comes to war.
Citi Chief Executive Jane Fraser said she was “optimistic” about private credit risks, at least for now.
“There will be an idiosyncratic risk from people who don’t have good credit standards, but I don’t think it’s a systemic problem,” Fraser said Tuesday at RBC’s Global Financial Institutions Conference. “What would be a little more concerning would be if the Middle East crisis were to drag on and concerns about AI evaluation would become more concentrated.”
In the conversation, she said that it is difficult to predict what will happen in the world and the market in the near future.
If three potential crises come together: geopolitical tensions, rifts in private trust, and AI disruption, “it’s going to become even more problematic,” Fraser said.
Concerns about the private credit industry have grown in recent weeks on the back of redemption demands from prominent funds. Blackstone and BlackRock last week placed caps on withdrawals from non-traded private credit funds.
Although top players in the private credit industry are protecting their portfolios, investors are particularly wary of some funds’ exposure to software companies, given the potential for AI to disrupt the sector. Some critics compare the current environment to pre-2008 and warn that the move could signal a broader market crisis.
Regarding how the Iran conflict is affecting the economy, Fraser said the big question is “duration and containability.” He said if oil prices remained above $100 a barrel for an extended period of time, it could have an impact on inflation. Oil prices rose above $100 a barrel Sunday night, but fell sharply on Monday after President Donald Trump suggested the war could soon end. Prices remained volatile on Tuesday.
Fraser also noted that there continue to be questions about the valuation of AI and how this technology will transform the industry. Citi, like many banks, is investing heavily in technology to transform its operations, leading to questions about whether its headcount will decline. The CEO said Tuesday that Citi continues to invest in technology, especially as new models continue to be announced.
