Private Credit

Private credit redemptions are up. Why? Bad loans at private credit firms made investors realize a little late that NOT marking debt to market value is a drawback, not an advantage. That led to loss of investor confidence and redemption requests ballooned. Private credit has a gating process that allows only 5% redemption per quarter. The next redemption is in June. If the 5% redemption request is greater than Natural Repayments + New Inflows, then private credit is cooked. And that is becoming increasingly likely.