'Cockroaches' in your finances? What to know about 'private credit'.

A prominent CEO called them 'cockroaches' last fall. Now, as losses mount in private credit, experts worry ordinary Americans are most exposed.

In September, an auto lender named Tricolor filed for bankruptcy. Tricolor specialized in making loans to riskier customers, often with little or no documentation. Just a few weeks later, First Brands, an auto parts company, also collapsed.

For some observers, the failure of the two companies last year was eerily similar to events in 2007, when the first tremors of what became the 2008 global financial crisis were felt. Jamie Dimon, CEO of JPMorgan Chase, was one.

“My antenna goes up when things like that happen,” Dimon told analysts at the time. “And I probably shouldn’t say this, but when you see one cockroach, there are probably more.”

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Now, as more distress spreads through the corner of the market that loaned money to companies like Tricolor and First Brands, experts are worried that those “cockroaches” are scurrying to the surface, as predicted. But even worse, perhaps, are concerns that individual investors may be most exposed to the losses that take place at moments like this, when risky bets go south all at once.