Executives dismissed fears that private credit market jitters are a sign of a systemic crisis.

The market got a spook earlier this year because private credit funds have lent heavily to the software industry — under threat from AI — and many investors sought to cash out funds.

Goldman Sachs’ president said at Semafor World Economy that there won’t be a major private credit problem without serious degradation in the economy, which is “much stronger than the narrative suggests,” while the head of Franklin Templeton said investors had overreacted to the risks.

The sentiment echoed that of Wall Street CEOs who, in earnings calls this week, said they’re “really not that worried” about private credit, Bloomberg wrote.