Banks let hedge funds short private credit
Goldman Sachs and JPMorgan are offering products that let hedge funds bet against the $1.8 trillion private‑credit market, effectively enabling short exposure to an opaque asset class. That’s a big new source of directional and hedging trades for credit quants — and a fresh dataset for measuring private‑credit liquidity risk. (x.com)
Goldman has packaged several investable indexes that span European financial institutions with private‑credit exposure, business‑development companies (BDCs) and a broader set of alternatives managers, and the bank is offering clients the option to invest in those indices. (Bloomberg) JPMorgan’s bespoke basket, assembled from publicly listed firms with ties to private lending, specifically includes alternatives managers and BDCs as primary components. (Bloomberg) Bank of America circulated a short recommendation tied to a 17‑stock basket naming firms such as Partners Group Holding AG, Deutsche Bank AG and Axa SA, then withdrew the note after a review found factual inaccuracies, according to Financial Times reporting and subsequent coverage. (Oninvest; Bloomberg) BlackRock limited repurchases in one of its large private‑credit vehicles by capping redemptions at 5% of shares in its $26 billion HPS Corporate Lending Fund after clients requested about 9.3% of shares. (Bloomberg) Morgan Stanley’s North Haven Private Income Fund said it met roughly 45.8% of redemption requests after investors sought nearly 11% of outstanding shares, enforcing the fund’s 5% quarterly cap and returning about $169 million to shareholders. (Investing.com; Reuters/Bloomberg) Cliffwater capped payouts at 7% for its roughly $33 billion Corporate Lending Fund after shareholders sought about 14% of shares, a development that prompted S&P to lower the fund’s outlook to negative. (Bloomberg; S&P/Bloomberg) Pimco president Christian Stracke warned that concentrated industry bets—positions of 20%–30% in single sectors like software—are prompting investors to redeem quickly rather than wait, a cited rationale for the recent wave of withdrawal requests. (Bloomberg)
