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EMAIL DIGESTS
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EMAIL DIGESTS
Daily
Every morning
Weekly
Tuesday recap
U.S. banks' loan exposure to NDFIs has grown to $1.4 trillion or about 11% of total balances, according to Moody's. That growth has been led by lending to private credit, which rose 7.5% QoQ (as of Dec. 31). Moody's says this "raises concentration risk in a fairly opaque market sector, since banks' exposures are concentrated with a comparatively small group of private credit managers." However, private credit lending is still a small percentage of the total at about 3.9%.
Interesting nugget in the $ARES ASIF letter, detailing who the redeemers were (11.6% of shares outstanding) ‘The majority of repurchase requests were made by a limited number of family offices and smaller institutions in select geographies who represent less than...
FITCH: U.S. private credit default rate declined to 5.4% for the trailing-12 months through February. This is down from the January peak of 5.8%.
Reminder that investors who requested redemptions from semi-liquid private-credit funds -- but couldn't get all of it back due to caps -- still pay fees on the unfulfilled portion. The fees don't stop just because the gates go up.
"It is possible that in response to non-traded BDC outflows, banks like JPM could become more diligently managing (down) borrowing bases to avoid being the funding source of those retail outflows." -- Via Wells Fargo analysts https://t.co/0vm2LXopvD
Saba Capital’s @boazweinstein called the Cliffwater redemption rate in yesterday’s ’Inside Alts, where he said it would be between 10% and 20%. (Cliffwater’s Q1 redemption rate was 14%, according to a source familiar with the matter) https://t.co/hplp7WPkAp
Morningstar warning to BDCs: "We view selling assets at substantial discounts to fair value as a significant sign of stress, which would likely have negative credit rating implications."
Our latest "Inside Alts" newsletter comprises a half-hour interview with Boaz Weinstein on private credit. https://t.co/EpwRZMKNzH https://t.co/ncDLXCEHm3
