- Underwater Mortgages Force China’s Banks to Get More Creative
- Trumpworld’s Growing Sway in Arms Sales on Display in Rome
- UK Signals It Won’t Let US Use Bases for Strikes on Iran Energy
- Hungary to Agree to Buy Oil From US at Orban-Vance Meeting
- Markets on Edge as Trump’s Iran Ultimatum Looms
- Traders Brace for Trump’s Iran Deadline as Frustration Grows
- High Gas Prices Will Haunt the GOP Even If the War End
- US Inflation Shows Worrying Parallels With 2022 Price Surge
- The American Gas Exporter That Pulls In Billions During Energy Shocks
- The K-Shaped Economy’s Defining Statistic Has Some Problems
- BNY and Robinhood Will Help Run ‘Trump Accounts’ for Children
- Goldman Says It’s Ready to Pounce as Retail Flees Private Credit
- Blackstone Hits $10 Billion Cap for Opportunistic Credit Fund
- Anthropic in Talks to Invest $200 Million in New Private-Equity Venture
- BlackRock, State Street Target Invesco’s $379 Billion Tech Grip
- Silicon Valley’s Hottest AI Metric Is Also Its Least Trusted
- AI-Displaced Workers Could Face Long Setbacks, Report Finds
- The Workers Opting to Retire Instead of Taking on AI
- Microsoft Plays Catch-Up in Data Center Build-Out
- Battery Giant CATL Taps Zijin Founder as Advisor for Mining Arm
- Ackman Pitches $65 Billion UMG Deal for US Listing, Stock Boost
- Kanye West Is Seeking Redemption. There’s a Long Road Ahead.
- The FCC May Rescue Frustrated NFL Fans
- Doritos at $7 a Bag Ended Up Costing PepsiCo Billions
- The Viral Japanese Planner That Has TikTok Getting Organized
Endgame threat: Trump warns Iran as his deadline for the Strait of Hormuz looms, saying "the entire country can be taken out in one night."
Record IPO: SpaceX (SPACE) outlines details of its IPO to bankers on Monday and plans to kick off its roadshow in June.
Savings tool: Treasury picks BNY (BK) as financial agent and Robinhood (HOOD) as brokerage to help run Trump Accounts for kids.
What's the latest
The $1.8T private credit market has been plagued by a surge in redemption requests amid fears of AI disruption and slowing returns. Business development companies, which directly lend to small- and middle-market companies, bore the brunt of the trepidation as they tend to have heavier exposure to software companies. But some banks are looking to capitalize on the recent pullback.
More declines: At the center of these concerns has been Blue Owl (OWL), whose stock closed at a new low on Monday, just days after hitting a record intraday low after the firm said it will limit redemptions from two of its private credit funds. Blue Owl last week disclosed that one of its technology-focused funds, OCIC, received redemption requests exceeding 20% of its shares outstanding. That's much higher than the standard 5% quarterly limit. Other major names have also capped redemptions from certain private credit funds - KKR (KKR), BlackRock (BLK), Blackstone (BX) and others. Blue Owl: Redemptions Panic Creates A Hard-To-Miss Opportunity
Bucking the trend: Goldman Sachs' (GS) private credit fund managed to avoid the sector-wide exodus, thanks to institutional investors. Redemption requests for Goldman Sachs Private Credit Corp. (GS Credit) were below the standard 5% quarterly cap during Q1. With retail and some wealth management investors pulling back from private credit, "we believe many institutional investors are recognizing this dislocation as an attractive entry or re-entry point into the asset class," the bank wrote in a letter to shareholders. GS Credit saw $1.04B in gross subscriptions during Q1, of which about 40% were from institutional clients globally, many of whom were first-time investors in the fund.
Seizing opportunity: Goldman said it can deploy net proceeds from strong inflows and portfolio repayments into an "attractive" investment environment. "As broader retail outflows pressure the private credit industry, we believe the supply-demand imbalance that benefited borrowers in recent years can reverse. Spreads are widening, structures are tightening, and documentation is improving," the bank noted. Goldman acknowledged that it is not insulated from the dynamics of the industry, but its institutionally oriented private credit platform allows it to be patient and pace its deployment at its discretion. Morgan Stanley (MS), which recently restricted withdrawals from one of its private credit funds, is now planning to launch a new interval fund that will invest across private credit strategies.
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What else is happening...
WSB survey results: China unlikely to invade Taiwan in 2027.
Anthropic (ANTHRO) inks TPU deal with Google, Broadcom.
Intel courts Amazon, Google (GOOGL) for packaging deal.
Amazon (AMZN) reduces its reliance on USPS as expected.
Strategy (MSTR) discloses $14.5B unrealized loss for Q1.
Schwab (SCHW) plans to offer spot crypto trading in 2026.
Pershing Square (PSHZF) offers to buy UMG (UMGNF).
U.S. shale drillers finally expected to boost crude production.
Constellation (CEG): Three Mile Island restart may be delayed.
Wells Fargo sees no rate cuts in 2026, but Hassett disagrees.
Today's Markets
In Asia, Japan flat. Hong Kong closed. China +0.3%. India +0.7%.
In Europe, at midday, London +0.1%. Paris +0.8%. Frankfurt +0.3%.
Futures at 6:30, Dow -0.1%. S&P -0.1%. Nasdaq -0.1%. Crude +1.2% to $113.80. Gold +0.1% to $4,687.50. Bitcoin -2% to $68,529.
Ten-year Treasury Yield unchanged at 4.34%.
On The Calendar
Companies reporting today include Aehr Test Systems (AEHR) and Levi Strauss (LEVI).