Lloyd Blankfein cautioned that the $1.8 trillion private credit market—direct loans by asset managers, private equity and debt funds—has grown rapidly since 2008 and may be overextended, drawing parallels to the pre-Lehman mortgage boom. He warned these loans are hard to value, seldom marked to market and could trigger a slow-burn crisis.

Blankfein highlighted that losses in private credit emerge gradually, eroding returns for pension funds, insurers and 401(k) plans over months or years rather than collapsing overnight. He specifically criticized Wall Street for pushing these illiquid products onto everyday investors at a peak of leverage.

A Goldman Sachs basket tracking software stocks has rebounded 14% since Feb. 23, trading at 22 times forward earnings versus 21 for the S&P 500, driven by a bottoming of AI-fueled selloff fears. Key names like Salesforce trade below long-term averages, suggesting perceived risks may be overstated.

Marcus by Goldman Sachs currently offers its highest one-year CD rate at 4% APY, leading the market for short-term certificates of deposit. This rate reflects elevated deposit costs and a flattening yield curve, as banks incentivize savers amidst declining broader interest rates.