Private Credit Turmoil Intensifies

Defaults at 5-year highs across major lenders (Ares, Blackstone, Blue Owl, Golub). BDC redemptions gated (Apollo only 29.8% honored), non-accruals at 2.8%, and yield advantage compressing. Institutional demand remains strong but retail-facing funds under pressure. Counter-narrative suggests sentiment overshoot, but liquidity stress and regulatory changes (NAIC reclassification) signal structural shift.