Goldman Sachs reports cracks in private credit market worldwide amid defaults and valuation concerns; Systemic crisis risk

Cracks in Private Credit | Goldman Sachs

After over a decade of rapid growth and relative calm, the private credit market has come under pressure as several high-profile defaults, concerns about potentially inflated valuations, and especially substantial exposure to a software industry vulnerable to AI disruption have fueled a surge in redemption requests. Could these stresses trigger a systemic crisis? And even if not, could they meaningfully impair the outlook for private credit?

Top of MindCracks in Private Credit

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