JPMorgan Chase CEO Jamie Dimon said that credit standards are being relaxed.

Jamie Dimon, CEO of JPMorgan Chase, stated in a letter to shareholders that as the credit cycle inevitably turns, the loosening of credit standards will result in higher losses on all leveraged loans than expected. Dimon said that creditors have made more aggressive and optimistic assumptions about future performance, contract terms are weakening, the use of physical payments is increasing, private institution ratings are becoming more aggressive, and there is more arbitrage. He also said that in general, private credit loans often lack high transparency or strict valuation, which "increases the likelihood of selling when people think the environment will worsen." He added that relative to the current environment, actual losses are already higher than they should be.