Latest Updates
Is Private Credit Normalizing?
First-quarter data say private credit is "normalizing, not deteriorating." But every reassuring number describes the asset side. A facility-level panel of 195 BDCs shows the fragility sits on the liability side — short-dated bank lines, a building unsecured maturity wall, record redemptions behind gates, and the largest funds meeting outflows by adding leverage rather than taking losses.
The Banks Are Fine. That's the Problem.
Regulators are stress-testing whether private credit will infect the banking system. SEC filings from the three largest non-traded BDCs show the opposite: banks are being repaid, not exposed. The $13.4 billion in new debt that funded $8.8 billion in redemptions sits with CLO investors, bondholders, and insurers, not on bank balance sheets. The risk did not disappear. It moved to where nobody is looking.