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Stock impact report

Why Wall Street is calling out ‘echoes' of the 2008 financial crisis [CNN]

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: CNN
For months, investors and analysts have kept a close eye on the shadowy corner of finance known as private credit, where alarm bells have stoked fears of a repeat of the 2008 financial crisis. Whether those alarms amount to a handful of isolated bad bets or a more menacing systemic weakness in the $1.8 trillion sector is far from clear. But if the latter is even a remote possibility, it's worth understanding what the heck is going on. A quick primer on ‘private credit' Very simply, the term refers to investors lending money directly to private businesses, bypassing banks. The borrowers — mostly smaller companies that banks would consider too risky or complex for a traditional loan — pay a higher interest rate in exchange for quick access to capital and flexible financing terms. Here's how it usually works: Big asset managers (think Blackstone, better known for buying companies outright) pool funds from big investors like pensions or insurance companies looking for higher retu Show less Read more
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