Private credit secondaries present a new opportunity
The hosts argued that the confluence of BDC liquidity issues and LP redemption demands is likely to drive more activity in the credit secondary market, a space historically dominated by equity.
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The Callback
Private credit slowdown threatens debt refinancing cycles
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The discussion argued that the recent capping of redemptions in private credit semi-liquid funds is a liquidity management feature, not a sign of underlying asset failure, designed to prevent fire sales.
The hosts argued that the confluence of BDC liquidity issues and LP redemption demands is likely to drive more activity in the credit secondary market, a space historically dominated by equity.