Private Credit Stress

Cliffwater ($33B fund) had 14% redemption requests in Q1 — can only pay 7%. Morgan Stanley also capped withdrawals. CLO bonds -4.1% in February. JPMorgan cut credit lines to some private credit funds. $1.2T U.S. bank exposure means stress can transmit broadly to lending conditions. Rubric Capital's Rosen called this the canary in the coal mine. Escalating from monitoring to active systemic risk.