"Strain Is Spreading": FT Exposes Private Credit Distress At Decade Highs

[Pallas_Boreas]

Since last fall, we have repeatedly flagged the private credit sector's growing vulnerabilities.

Earlier coverage detailed how the asset class ballooned into a $2-3 trillion opaque market after banks retreated from riskier lending, only to face a wave of high-profile defaults (First Brands, Tricolor), surging redemptions that forced gates at major vehicles, rising PIK usage, and AI-related risks to software-heavy portfolios.

Link: https://www.zerohedge.com/markets/strain-spreading-ft-exposes-private-credit-distress-decade-highs