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Stock impact report

Private credit’s ‘zero-loss fantasy’ is coming to an end as defaults and fund exits rise [MSNBC.com]

Morgan Stanley (MS) 
Last morgan stanley earnings: 4/16 07:15 am Check Earnings Report
US:NYSE Investor Relations: morganstanley.com/about-us-ir
Company Research Source: MSNBC.com
In this articleDeteriorating 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 ManagementApollo Global Managementsimilar measuresOther managers, includingBlue Owl Capitalinvestor retreatComparisons to the build-up to the 2008 Global Financial Crisis are now intensifying as concerns over underlying loan quality grow.Morgan Stanley recently warned default rates in private credit direct lending could surge to 8%, well above the 2-2.5% historical average, with pressure concentrated in sectors vulnerable to disruption, such as software.However, Morgan Stanley analysts led by strategist Joyce Jiang also said an 8% default spike would be "significant but not systemic," poi Show less Read more
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