2025-12-23 05:21:57

The US leveraged loan market is facing mounting pressure right now. Default rates have held above 4% for 22 straight months—matching the exact duration we saw during the 2008 Financial Crisis. That's the concerning part: this current downturn has already lasted twice as long as what happened in 2020 during the pandemic shock. The situation reflects broader credit stress in traditional markets, something worth monitoring closely given how correlated risk assets tend to move. As we head further into the cycle, November's figures are expected to offer fresh clues about whether this trend is stabilizing or deteriorating further.

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LiquidityWitch

· 12-23 05:51

22 months with a 4% default rate, this feels a bit like 2008, kind of scary --- Once again, we’re benchmarking against the financial crisis, searching for the next 2008 every day... --- Is the leveraged loan market about to collapse? Same old story, let’s wait for the November data to see. --- The pandemic has long passed, why is this dragging on for so long this time? It’s really getting hard to hold on. --- Risk assets are all falling, I just want to know how they plan to rescue the market this time, is it still point shaving? --- Continuous 22 months above 4%, sounds like quite a few projects are going to blow up. --- With such great credit pressure, should we reduce our holdings in TradFi and go all in on-chain? --- Betting that the November data can reverse? Feels like there’s not much hope, bro. --- Another cycle has come, the playbook is the same, just this time it’s taking longer.

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hodl_therapist

· 12-23 05:38

Are the traders panicking? 4%+ default rate over 22 months, feeling a déjà vu of 2008 This time is really different, more persistent than the pandemic, is TradFi about to collapse? Here we go again, every time it's said to be a major event, I'm just waiting to see what the November data says Honestly believe the leveraged market will explode sooner or later, we should have been vigilant by now Those who still dare to touch traditional loans really have guts

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