06: Steve Eisman's Perspectives on Private Credit & Why It's Probably Not 2008

Glenn Schorr welcomes legendary investor Steve Eisman, renowned for his market-shaking calls before the global financial crisis, to uncover what could be brewing beneath the so-far “safe” surface of private credit and direct lending.Journey through key moments where Steve Eisman was years ahead of consensus on everything from the dismantling of Glass-Steagall to the demise of subprime lending, to the heart of 2008 itself. Together, they break down why today's market "is not a leverage story," how unprecedented exposure in private credit may drive a rolling cycle of restructurings, and whether the industry’s golden age of growth has been a genius move—or just a mirage in the absence of a credit cycle.Gain insight into why strong banks may avert systemic disaster, why private equity’s “lack of volatility” is an illusion, and how AI, receding software multiples, and refinancing walls could force the next big reckoning—not just bad vintages. Full of candid stories, historical lessons, and unfiltered opinions, this episode gives you a rare view into both the vigilance and optimism needed for today’s markets.Episode Timestamped Overview:00:00 Introduction: Who is Steve Eisman and why his calls matter01:32 Glass-Steagall, broker M&A, and early career inspiration06:01 The fall of consumer finance companies and the power of granular data12:06 The Great Financial Crisis: inside stories and data vs. narrative18:05 Today’s private credit: what’s different, what’s at risk21:17 Hidden leverage and stress points: software, refinancing, and AI28:35 Resilience in the US economy and historic loss rates31:08 Why this isn’t a leverage crisis—mistaking no credit cycle for genius33:45 Volatility washing in private equity and the illusion of low risk39:30 Will bad vintages become great opportunities? Institutional and retail impact40:11 Closing reflections: Is there a forest through the trees today—or just a period of market adjustment?Applicable current disclosures regarding the companies discussed in this video are available at the offices of Evercore ISI: 55 East 52nd Street, New York, NY 10055, and at the following site: evercoreisi.mediasterling.com/disclosure⁠