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Liz Hoffman warns private credit cracks reveal deeper systemic risks
Private credit is facing its first real test as retail investors trigger the industry's version of a bank run. While Wall Street treats these 'shadow' loans as vanilla corporate debt, the underlying equity in these deals is increasingly at risk of being wiped out as the credit cycle finally turns. The collision of high-leverage software buyouts and the AI-driven 'SaaS apocalypse' could create a ripple effect that traditional markets are dangerously ignoring.
4 days ago