🚨 Liquidity Problems in the Private Credit Market



Several major asset managers have begun restricting withdrawals from credit funds.

What's happening:

• In the Cliffwater Corporate Lending Fund ($33 billion ) investors requested withdrawals of 14% of assets, but only 7% is allowed — this is the maximum limit.

• In Morgan Stanley's North Haven Private Income Fund (~$8 billion ) redemption requests also exceeded the limit — investors received less than half of the requested funds.

Reason: funds invest in long-term corporate loans that cannot be quickly sold without losses. Pressure is intensifying due to revaluation of certain loans, especially in the software sector, where companies may face competition from AI.

Additionally:

• JPMorgan has already begun restricting lending to such funds

• Deutsche Bank reported that its direct lending portfolio grew to $30 billion

The private credit market (~$1.8 trillion ) is beginning to face a liquidity problem. If capital outflows continue, funds will have to sell or write off loans, which could increase default risks and pressure on the financial system.

Probably they are preparing for your alt season at highs to buy back and then the money started running away 😄
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