Is the private credit industry a threat to the financial system?

美国私人信贷要暴雷?

Money Talks from The Economist

2026-03-19

36 分钟
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There are jitters among America’s corporate lenders. There have been high profile defaults of big borrowers like Tricolor Holdings and First Brands, which collapsed just weeks apart. Then, last month, investors rushed to pull their money from a fund operated by Blue Owl, a private credit behemoth. With energy costs spiking and interest rate cuts now looking less likely, how much trouble are America’s corporate borrowers in? Guests and hosts: - Tuck Hardie from Houlihan Lokey - Alice Fulwood, co-host of “Money Talks” - Ethan Wu, co-host of “Money Talks” - Mike Bird, co-host of “Money Talks” Topics covered: - Private credit - Blue Owl - First Brands and Tricolor Holdings Transcripts of our podcasts are available via economist.com/podcasts. Listen to what matters most, from global politics and business to science and technology—subscribe to Economist Podcasts+. For more information about how to access Economist Podcasts+, please visit our FAQs page or watch our video explaining how to link your account.
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  • Shares of KKR and Blue Owl were down as much as 10% yesterday.

  • The private credit side of the business has seen a real sentiment shift.

  • Apollo, Aries, Blue Owl, and KKR are seeing significant declines.

  • People are getting worried about private credit.

  • Keeping an eye on shares of Blue Owl,

  • you can see it and other alternative asset managers' stocks have been under pressure.

  • In February, Blue Owl, a giant Wall Street lender, was forced to ban withdrawals

  • from a private credit fund as investors clamored to get their money back.

  • The move did reignite concerns around liquidity and valuation for many private credit vehicles.

  • It's just the latest sign of alarm among America's corporate borrowers.

  • Two high-profile bankruptcies in the auto finance space

  • have led to a broad-based sell-off in the publicly traded alternatives firms.

  • Last October, two auto companies declared bankruptcy.

  • Tricolor and First Brands bankruptcies shed a new light on the risks of over-leverage and subprime borrowers.

  • The private credit market has expanded dramatically over the past few years,

  • becoming a major source of lending, especially to risky borrowers.

  • And now, against a backdrop of AI disruption and surging energy prices,

  • private credit is adding to the wider turmoil.

  • As we continue Operation Epic Fury, we're also focused on keeping energy and oil flowing to the world.

  • Previous energy shocks, like the oil crises of the 1970s, led to a wave of corporate defaults.