Private Markets Edit: Private credit's real risk

Has private credit become too risky? Not necessarily

Record-high redemption requests. Parallels to the global financial crisis. Untested in a default cycle. The concerns about the $2 trillion private credit market are real. But should investors abandon the asset class altogether? Insights from Cliffwater, Robeco, PIMCO, and more look behind the headlines to help allocators better assess this market under scrutiny.

Private Credit: The Good, the Bad, and the Illiquid (Robeco)

A reliable source of higher yield when rates were low, is private credit poised to unsettle investors in today’s environment?

Navigating CLO Opportunities in a Volatile Loan Market (Nuveen)

Geopolitical uncertainty is creating targeted spread widening – and potential opportunities – across CLO BB debt and CLO equity.

Top of Mind: Cracks in Private Credit (Goldman Sachs)

A surge in redemption requests has drawn some comparisons to the setup heading into the global financial crisis.

Three Cyclical Forces Shaping Markets (PIMCO)

Energy shocks, private credit stress, and AI disruption are changing expectations for rates and risk.

The Arithmetic of Direct Lending (Cliffwater)

Let the math show it: direct lending results have been remarkably consistent for more than 20 years.

Private Credit: An Honest Assessment (Sona Asset Management)

The magnitude of redemptions is hard to ignore. Should investors abandon private credit altogether?

The Wall of Maturities: Anecdotes Are Not Data (Principal Asset Management)

Will refinancing risk create a wave of defaults? What the experience of recent maturities suggests about what lies ahead.

Evolving Trends in BDCs in the U.S. Direct Lending Market (Bank of Japan)

A closer look at BDCs: Could stress in these vehicles spread throughout the global financial system?

Private Assets in Portfolios: Reassessing the Strategic Case (AllianceBernstein)

What should investors know about a private credit market that, in its present form, has not been tested in a default cycle?

Investors at the Private Credit Gate (PGIM)

For compliance reasons, this paper is only accessible in certain geographies

Could the factors that have recently rattled private credit make it healthier going forward?

Private Credit’s Woes: Systemic Implications for EU Banks (Scope Ratings)

European banks are indirectly exposed to emerging vulnerabilities within the private credit ecosystem. How could this play out?

Private Credit Under Scrutiny: What Matters—and What Doesn’t (Adams Street)

Are the headline risks overstated? A look at the underlying forces and fundamentals driving the private credit market.

Private Credit Redemptions, Defaults, and Wrappers, Oh My! (CAIA blog)

Conflating three separate and distinct conversations (redemptions, defaults, and structural issues) into one crisis narrative has potential to do real damage.