Private credit issuance is experiencing significant liquidity demands from retailers, leading major fund managers to limit withdrawals as the quality of loans, particularly in the software sector, is questioned.
The article highlights the alarming signs emerging from the rapid growth of the private credit market, which, unlike traditional banking credit, primarily originates from specialized funds. With assets reaching $1.8 trillion, this sector has exploded in size, growing from $150 billion two decades ago, according to Preqin. Recently, significant fund managers like BlackRock and Morgan Stanley have faced a surge in liquidity requests from investors, prompting them to impose withdrawal limits.
