Redemption Day
When the exit is smaller than the entrance
I wasn’t going to write about private credit this week. I was all set to get stuck into a piece about maritime insurance. I even had a name for it: The Underwriters of Hormuz. But it’s not often three of the top four stories in the Financial Times line up about a theme we’ve explored, so here we are (though if readers want to discuss what I...
Steelman (strongest version of this narrative): The current wave of redemption requests from private credit fund investors represents a growing trend and potential concern for the stability of these investment vehicles. The use of social media platforms for coordination among retail investors may amplify this trend, as seen in the recent requests exceeding usual limits in some cases. Goldman Sachs estimates total outflows could reach $45-$70 billion over the next two years.
Patterns detected: AR...