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The Echoes of 2007 Are Becoming More Pronounced: Credit Weekly
By Ethan M Steinberg | September 27, 2025, at 7:00 PM UTC
Traders are actively engaged on the trading floor of the New York Stock Exchange (NYSE) in New York, as seen on September 22.
Photographer: Michael Nagle/Bloomberg
As we observe the financial landscape, signs are emerging that resonate with the events of 2007. The market is witnessing a surge in large leveraged buyouts and a concerning accumulation of high-risk debt. Additionally, there are early indicators suggesting that subprime consumers are starting to struggle with their financial obligations.
While the current situation may not replicate 2007 entirely, the similarities are striking. In 2007, TXU Corp. made headlines with its $44 billion leveraged buyout; today, Electronic Arts Inc. is rumored to be on the verge of a $50 billion acquisition. The debt landscape has shifted from subprime mortgage bonds in the past to a significant presence of private credit in today’s market. Furthermore, back then, subprime borrowers were missing mortgage payments, whereas now, they are increasingly falling behind on auto loans.
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Source: Original