First Brands, Tricolor, Market Financial Services' sudden bankruptcies triggered a small run on leading private credit firms especially and private credit asset managers also like Blue Owl, Ares, BlackRock, Blackstone, Apollo etc.
Since there have been no other high profile bankruptcies of companies which took out high yield loans, it seems the private equity and private credit industry will recover from the shock in a year or so.
Provided that the AI boom does not turn to a bust or there is no other geopolitical or macroeconomic shock.
The recent redemptions from private credit funds staved off and the first quarter results of private equity and private credit firms were good.
So private equity and private credit asset managers are on a recovery trajectory.
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