Mickey Bhatia warns private credit tourists may be forced to sell loans

2 articles · Updated · Bloomberg · Apr 30

The Citigroup head of spread products said on the Bloomberg Intelligence Credit Edge podcast that inexperienced lenders could dump debt in a downturn.
He warned sales below economic value, rather than working out troubled loans, could pressure the wider corporate debt market.
The comments highlight concerns that newer private credit entrants may amplify stress if market conditions deteriorate.

Is the $3.7 trillion private credit market, with its hidden risks and novice investors, staging a repeat of the 2008 financial crisis?

With billions in retirement funds now flowing into opaque credit, are everyday investors being led into an inescapable liquidity trap?