While Black Rock and Goldman Sachs flail around, insisting that the private credit crisis is not a systemic crisis, the Fed, the Bank of England, and the Canadian central bank shine a light on the sector. Routine, explained the police inspector while asking for an alibi…
Bloomberg reported that on April 10, the Fed asked “major US banks for details about their exposure to private credit following a surge in redemptions from the funds and a rise in troubled loans in the industry, according to people with knowledge of the matter. The queries by Fed examiners are intended to assess the level of stress in the private credit industry and the potential for it to spill over to the wider financial system, said the people, requesting anonymity to discuss the work.”
