Private-credit stress tests liquidity and valuation confidence

Redemption pressure, manager-mark discounts, PIK income and maturity-wall concerns continue to expose liquidity and valuation mismatches in private credit. Apollo’s SREIT recapitalization and KKR–Capital Group-style public/private credit convergence point toward demand for structured or more liquid access, but investors should prioritize cash interest, covenants, realized losses and redemption mechanics over headline yield.