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

"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...
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