What is private credit?

Private credit refers to non-bank lending to companies, often involving higher risk and less regulation than traditional bank loans. The material tracks concerns about potential defaults, redemption pressures, and indiscriminate selling in this market.

• Mar 2026 - Kieran Goodwin warned that a bear case for private credit involves redemptions, real defaults, and forced selling, with interval funds running out of liquid assets and high barriers to gating.
• Mar 2026 - Kieran Goodwin noted that lending to companies with negative EBITDA without warrants would have been ridiculed, implying risky practices in private credit.
• Mar 2026 - Kieran Goodwin predicted a wave of defaults in the software space, a key area for private credit.
• Apr 2026 - Bruce MacDonald stated there will be indiscriminate selling in private credit.
• May 2026 - Tom Shapiro said that when capital floods into private credit and people are paid for production, pushing out huge amounts of money, it never ends well.