Private Credit’s Hot Streak Is Over

TL;DR

Private Credit’s Hot Streak Is Over Another week passed with no real movement in ending the crisis in the Middle East, and more importantly getting the global chokepoint the Strait of Hormuz reopened. - Major funds like BlackRock and Blackstone have now reported Q1 NAV declines due to markdowns on troubled software loans, amplifying redemption pressures. - Rising defaults in private credit threaten insurer balance sheets and could trigger a broader credit crunch for mid-market firms.