News Analysis
Blue Owl Capital’s decision to restrict withdrawals from one of its retail investor funds has renewed concerns about liquidity strains in the multi-trillion-dollar private credit market, raising questions about whether isolated stress could become a systemic issue.
Market Jitters
The development follows recent turbulence in credit markets, including the bankruptcies of subprime auto lender Tricolor and auto parts supplier First Brands Group. At the same time, a Moody’s report warning about U.S. banks’ growing exposure to private equity and private credit has heightened anxiety over potential contagion risks.
