Eurodollar University BREAKING: MORE Private Credit Losses Just Hit
Nov 13, 2025
The collapse of another private credit firm has raised alarms about widespread mistrust in shadow banking. Major players like BlackRock face staggering write-downs, revealing the precarious state of private loans. Rising defaults and opaque financing tactics are amplifying concerns. The podcast dives into alarming trends, such as record subprime auto loan delinquencies. With deteriorating trust, there's a risk of contagion, potentially shaking the entire financial landscape. A closer look at these issues offers crucial insights into the current economic climate.
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Opacity Erodes Trust In Shadow Banking
- Private credit losses matter less for size and more for the mistrust they reveal in the shadow banking system.
- Jeff Snider warns that information asymmetry and opacity can unravel reputation and collateral across markets.
Demand Transparency Over Reputation
- Question the tangled web of affiliates and financing arms before assuming collateral is sound.
- Do not rely solely on reputation; demand transparency about who is borrowing and how loans are secured.
BlackRock Went From Par To Zero
- BlackRock marked Renovo's private debt at par a month ago and then marked it to zero after bankruptcy a few weeks later.
- Renovo's lenders included BlackRock, Apollo, and Oaktree, revealing big names tied to opaque private deals.