Mar. 24 at 10:54 PM
$SPY ~ Breaking News: 2007/2026 redux. Sound familiar to anyone? ~ Moody's JUST Downgraded A MASSIVE “Private Credit” Fund in Q1 2026!. Private credit can still get very ugly. Now that “investors” are aware of withdrawal limits (Just like summer 2007), they'll have a greater incentive to always ask for the maximum, requiring further “asset” & “collateral” sales that will depress returns - which, in turn, will encourage even more withdrawals causing a negative feedback doom loop. Worse, funds will likely sell their best assets (Gold & Silver) first to minimize realized losses, leaving behind the most problematic holdings (AI & Subprime business & consumer loans) - and giving investors yet even more incentive to get out sooner if they can. Judging from the recent spate of redemption requests & now a Moody’s DOWNGRADE of a massive “Private Credit” fund, this adverse negative feedback loop has already begun.
$DIA $XLF $KRE $KKR