Hidden losses threaten private credit
The guest argued that private credit markets and multifamily real estate securitizations are masking massive losses due to poor underwriting standards and a lack of risk management.
The argument
The guest pointed to Blackstone gating its funds since 2022, questionable investments by Blue Owl, and systemic underwriting failures in Freddie Mac multifamily securitizations as evidence of widespread risk.
The thesis, stress-tested
✓ What validates it
- ✓Increased gating of private credit funds
- ✓Rising default rates in Freddie Mac multifamily securitizations
- ✓Write-downs in private credit portfolios
▸ Risks discussed
- ▸Regulatory interventions could stabilize the market
- ▸A drop in interest rates could alleviate refinancing pressure on real estate assets
Hear it yourself
"There's so much information coming out there. We wanna separate the signal from the noise. Could you fill us in on the main trends you're watching right now that you think more people should be focused on? Sure. So I think the last time we spoke, I probably mentioned this too, but I'm watching narratives. And and I'm I'm I'm doing it by stepping back, Jesse. You know, I think we've we've been in this bubble for so much for so long that I I don't have any emotion about it anymore. I can just step back and watch what are the headlines, how are they converging, where are they converging, and and not getting emotional."
01:15
AFFILIATE LINK · ZORTIX MAY EARN A COMMISSION · NEVER A RECOMMENDATION TO TRADE