Valuetainment "Give My Money Back!" - Investors PANIC As BlackRock Linked HPS Faces $400M FRAUD Investigation
Nov 22, 2025
A private credit fund's redemption freeze sends shockwaves through the financial sector. Experts warn that sloppy underwriting and escalating investor panic could lead to a liquidity crisis reminiscent of 2008. The discussion covers alarming investigations into BlackRock's HPS, facing $400 million in fake receivables. Panelists dissect the risks of growing private credit, citing recent failures and warning signs. They emphasize the need for robust business planning in the face of rising demands for cash from nervous investors.
AI Snips
Chapters
Books
Transcript
Episode notes
Private Credit Is A Hidden Systemic Risk
- Private credit has ballooned into a shadow banking system built on leverage and weak underwriting.
- Patrick Bet-David warns this opaque growth can morph from credit losses into a wider liquidity crisis if investors panic.
Underwriting Slippage Fueled The Problem
- Underwriting standards deteriorated as private credit funds chased volume and yield.
- The lack of transparency means losses are unknown and can trigger investor runs when trust collapses.
2008 Redemption Pattern Repeating
- The panel compares today's investor redemptions to the early stages of the 2008 crisis when hedge funds faced runs.
- Patrick Bet-David recounts how investors demanded withdrawals and fueled cascading selling in 2008.
