Is Private Credit Ignoring Evidence of Business Collapse?
Posted by freedomforall 1 day, 1 hour ago to Business
Excerpt:
"Another one bites the dust in private credit.
Bloomberg reported today that BlackRock has abruptly wiped out the value of a loan inside its private credit arm, marking a roughly $25 million position tied to Infinite Commerce Holdings at zero. And you don’t need a Yale PhD in Economics to know there’s a big difference between $25,000,000 and $0,000,000.
Just three months earlier, the junior debt had been valued at 100 cents on the dollar. In other words, a loan that appeared fully performing at the end of the third quarter is now considered worthless.
But the story isn’t $25 million going “poof” into thin air, it’s how quick it happened."
"Another one bites the dust in private credit.
Bloomberg reported today that BlackRock has abruptly wiped out the value of a loan inside its private credit arm, marking a roughly $25 million position tied to Infinite Commerce Holdings at zero. And you don’t need a Yale PhD in Economics to know there’s a big difference between $25,000,000 and $0,000,000.
Just three months earlier, the junior debt had been valued at 100 cents on the dollar. In other words, a loan that appeared fully performing at the end of the third quarter is now considered worthless.
But the story isn’t $25 million going “poof” into thin air, it’s how quick it happened."
