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

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.

In February, the red flag got about as red as it gets...

• Private Credit Rocked By UBS Shock Outlook: Record "Cascading Defaults" And Widespread Contagion

But, as a wave of private-credit providers unleashed their PR teams - and the story slipped off the lips of the TV talking-heads - it remains top of mind for traders, as we most recently noted:

• Private Credit: The New Junk Bond Market

• Private Credit’s Problems Just Got Real  READ MORE AT SOURCE »

  Originally reported by ZeroHedge News
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