#private-credit

#private-credit

Apollo's private credit fund received redemption requests for 11.2% of outstanding shares, totaling more than $1.5 billion, but gated requests to just 5%.

Blue Owl Capital ( ) shares are falling 9% in morning trading today after the firm announced it would permanently halt quarterly redemptions from its Blue Owl Capital Corporation II fund, known as OBDC II. This non-traded business development company (BDC), aimed at individual investors, will instead provide liquidity through periodic distributions as it sells assets and collects loan repayments.

Rowan said the book is an attempt to clarify the confusion he sees mounting over the definition of private credit, which he attributed to the "media-ization of financial markets." "One of the things that's been frustrating to us is that we have this term private credit," Rowan said. "No one actually knows what it means, and everyone uses it differently."

When companies need a loan, traditionally, they turn to a bank. But increasingly, they are turning to financial firms that are not really banks but do have a lot of cash. This is the private credit market. It has exploded in the past 15 years. It's now valued at around $2 trillion. Natasha Sarin is president of the Yale Budget Lab, and she argues that these private credit firms are making risky loans - so risky they have got her thinking about the 2008 financial crisis.

The number of private credit deals that are changed after the initial deal is signed to include more risky terms for the lender is on the rise, according to Lincoln International, an investment bank advisory service that monitors that market. That's a sign that there are potential "cracks" in the $3 trillion private credit market, according to Brian Garfield, Lincoln's managing director and head of U.S. portfolio valuations.

Prime Minister Sanae Takaichi's October confirmation triggered immediate volatility across Japanese markets. Long-term bond yields reached multi-year highs, the yen fell past the 150-per-dollar threshold, and equity indices climbed to record territory. Her public calls for looser monetary policy clashed with market expectations, forcing some investors to recalibrate their assumptions about the Bank of Japan's next moves. The turbulence reflects deeper pressures reshaping Japan's corporate funding environment.

We're beginning to see huge rating agency arbitrage in the insurance business," he said. "In 2007, subprime was all about rating agency arbitrage.

The recent failures of auto lender Tricolor and auto-parts manufacturer First Brands, which JPMorgan CEO Jamie Dimon dubbed "cockroaches," had the biggest names on Wall Street pointing fingers last week. Blackstone has been paying attention too, but on its third-quarter earnings call on Thursday, the company had a clear message: any attempts to tie these bankruptcies to private credit are fake news.

For perspective: Global assets under management (AUM) in the wealth market reached $159 trillion in 2024, after growing by 20% over the prior five years, according to the Natixis Wealth Industry Survey. As for private assets specifically, PitchBook has projected that AUM held by general partners (GPs) will increase from $18.7 trillion in 2024 to $24.1 trillion by the end of 2029.

Private credit allows investors to lend money to private companies rather than buying stock, offering high risk and high reward, often independent of the stock market.