Matt Levine’s Money Stuff: People Worry About BCRED Liquidity

BCRED

Let’s say that you work in private credit and you think that private credit is great. Oh, sure, you’ve seen all the headlines; you know people are worried about SaaSpocalypses and cockroaches and so forth. You just think they’re wrong. You did the deals, you know the credits, and you think that all of these loans are going to work out great and pay back par. How should you trade that thesis?

The obvious intuitive answer is something like: “If people are panicking and want to sell their shares of private credit funds for 80 cents on the dollar, and ...