The article is long and admittedly a bit boring, but if I don’t lay out the risk details, it feels like clickbait. Overall, the risks in U.S. private credit are gradually increasing. Even BlackRock and Blackstone have faced requests to ramp up redemptions. Investors’ risk appetite is declining, redemption intentions are rising, and doubts about valuations and repayment capabilities are deepening. With high interest rates persisting, refinancing becoming harder, and underlying borrowers under pressure, investors are starting to reassess the authenticity of valuations and repayment capabilities. If redemptions expand, defaults increase, and credit spreads widen, liquidity pressure could escalate into a real credit event. In plain terms, if the U.S. experiences a more significant recession or financial incident down the line, private credit could very well be one of the triggers. If the Fed doesn’t enter a phase of aggressive rate cuts, the likelihood of risks emerging could continue to rise. Bitget VIP, lower fees, crazier perks.