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0 0.0100056106227792 0.0100056106227792 0.0100056106227792 0.00766785113147566 0.00766785113147566 0.00570413315878062 0.00925752758556208
Stock impact report

Private credit's ‘zero-loss fantasy' is coming to an end as defaults and fund exits rise [CNBC]

Ares Management Corporation Class A (ARES) 
Last ares management corporation class a earnings: 2/13 06:00 am Check Earnings Report
US:NYSE Investor Relations: ares-ir.com
Company Research Source: CNBC
A wave of investor withdrawals and concerns over deteriorating loan quality are forcing asset managers to cap redemptions in their private credit funds. But strategists say a rise in defaults could help flush out bad loans, bringing a painful but ultimately healthy reset for the sector. Risks remain concentrated in highly leveraged, rate-sensitive debt — particularly among software names and smaller borrowers — as ‘shadow defaults' and ‘amend-and-pretend' tools may delay failures. In this article Deteriorating asset quality, collateral markdowns and a growing rush for the exits are rattling private credit markets and prompting comparisons to the Global Financial Crisis. But a spike in loan defaults, while painful, could help shake out pockets of stress from the $3 trillion sector and provide what one industry pro calls a “healthy reset” after its first major liquidity test. Ares Management on Tuesday opted to curb investor withdrawals from its $10.7 billion private credit Show less Read more
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