Private Credit's Opaque $3 Trillion Market Starts Gating Investor Cash
BlackRock, Blackstone, Apollo, Cliffwater and Blue Owl blocked redemptions in the first quarter after First Brands and Tri-Color Auto collapsed.
- Banks extended roughly $2.3 trillion in contingent credit lines to these unregulated lending funds.
- Morgan Stanley expects up to half of $1.5 trillion in AI datacenter financing from private credit.
- Blackstone's BCRED fund earned $0.54 a share, paid $0.60, then cut its payout back to $0.54.
Why it matters: A market too opaque to price its debt reveals losses only when they can't be hidden anymore.
Ed Dowd, "Private Credit: The New Junk Bond Market," Beyond the Narrative (via Zerohedge) ↗ · Jul 17, 20267/17/26 · ✓ Checked✓ Check