Blue Owl Capital’s decision to restrict withdrawals from one of its retail investor funds has renewed concerns about liquidity strains in the multi-trillion-dollar private credit market, raising questions about whether isolated stress could become a systemic issue.
Market Jitters
The development follows recent turbulence in credit markets, including the bankruptcies of subprime auto lender Tricolor and auto parts supplier First Brands Group. At the same time, a Moody’s report warning about U.S. banks’ growing exposure to private equity and private credit has heightened anxiety over potential contagion risks.
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”
