Cracks in the US private credit market are intensifying: Blue Owl Capital shares dropped -22.7% in February, posting their worst month on record. This marks the 7th consecutive monthly decline, the longest streak in history. Meanwhile, short interest in Blue Owl is up to 14.7%, an all-time high. S&P Global puts short interest even higher, at 17.9%, up from 14.3% last week. Blue Owl was also the most borrowed stock among all US equities on Wednesday, with over 19 million shares on loan. All while financing rates to borrow the stock are up +266% MoM, signaling aggressive demand for shorts. The private credit selloff is accelerating.(The Kobeissi Letter)