Joining us now is Brennan Hawin, Beimo Capital Market, senior equity analyst. So, uh, Brennan, uh, look, the fear is flying around. Um, let's start at the epicenter with the alternative asset managers. Some of them have been just weighed down by a constant spiral of concern about what's in these private credit portfolios, right? Is there value there or should we just sort of assume that other shoes are going to drop? >> Well, I mean, it is they are credit portfolios, right? and and you make a loan, it's not ...

JPMorgan Chase & Co (NYSE:JPM) shares are lower Monday afternoon, falling as investors dumped financials amid a broad sell-off tied to mounting worries over private credit and AI-linked credit risks. The broader State Street Financial SPDR ETF (NYSE:XLF) dropped more than 3%, with big banks and asset managers leading declines.Here’s what investors need to know.JPMorgan Chase stock is feeling bearish pressure. What’s pressuring JPM stock?Blue Owl Redemption Shift UnnervesRecent headlines about "halting redem ...

RT The Rollup (@therollupco)Sam Ruskin uses the Aave-to-Morpho evolution to explain what's next for private credit. https://t.co/LdUgBMzkfB ...

RT Bloomberg Live (@BloombergLive)How are strategic allocators building durable portfolios in today’s credit markets?HPS CEO Scott Kapnick discusses private credit, market dispersion, and multi-year portfolio construction at #BloombergInvest with @BloombergTV Anchor @daniburgz.Live 3/4 at 10:10 AM ET!https://t.co/M67O8zRwc7 ...

GOOD MORNING. THIS IS HORIZONS MIDDLE EAST AND AFRICA. GOLD AND SILVER PLUNGE EXTENDING A DRAMATIC REVERSAL SINCE FRIDAY, THE SELLOFF EXTENDING IN OTHER PARTS OF THE MARKET WITH STOCKS AND FUTURES ALSO SLUMPING.THE DOLLAR HOLDS GAINS AFTER DONALD TRUMP NOMINATED KEVIN WARSH AS THE NEXT FEDERAL RESERVE CHAIR AND A GEOPOLITICAL RISK RECEIVED AFTER PRESIDENT TRUMP SAYS WASHINGTON IS TALKING WITH IRAN. 9:00 A. M.ACROSS THE EMIRATES. I AM JOUMANNA BERCETCHE IN DUBAI. WHILE THE MARKET MOVES OVER THE WEEKEND.AT TH ...

Investors underestimate the hazards when chasing fat yields in private credit, according to Pimco https://t.co/ZrSuY6CYbp ...

Core Insights - Jim Chanos warned that AI infrastructure is increasingly reliant on leveraged financing tied to depreciating hardware, with Nvidia Corp exemplifying this trend [1] - Nvidia's AI growth narrative is shifting from a semiconductor focus to a credit-centric story [1] Financing Landscape - CoreWeave Inc has built its AI cloud using over $10 billion in private credit, primarily backed by Nvidia GPUs and data center assets [2] - Analysts estimate CoreWeave's GPU-collateralized debt at approximately $10.45 billion, with total debt commitments projected to exceed $12 billion by 2025 [2] - CoreWeave has aggressively layered financing, securing a $2.3 billion GPU-backed facility in 2023, a $7.5 billion private credit facility in 2024, a $2.6 billion term loan in 2025, and $2 billion in convertible notes [3] Broader Market Implications - The "neocloud" sector is estimated to carry over $20 billion in GPU-backed debt, creating a new private-credit asset class focused on AI infrastructure [4] - For Nvidia shareholders, AI demand is increasingly linked to the availability of private credit, not solely enterprise adoption [5] - The capital structure of AI infrastructure is becoming more debt-financed, indicating a shift in how Nvidia's revenue is influenced by capital market conditions [5] Investment Perspective - Nvidia remains a semiconductor story, but it is also evolving into a private credit macro trade, a factor that Wall Street is beginning to incorporate into its pricing [6]

Among giant private capital firms, Carlyle is playing catch up. Chief Harvey Schwartz insists there is plenty of growth left in the frothy $2 trillion private credit business. https://t.co/v34UOZWIEJ (Photo: Steven Ferdman via Getty Images) https://t.co/43xFxAAYkB ...

Apollo's boss Marc Rowan says everyone's lost their minds over the dangers of private credit. He's not entirely right, argues @PaulJDavies (via @opinion) https://t.co/tLhJX6lTC9 ...

Federal Reserve (The Fed) & Interest Rates - A potential hawkish rate cut in December is considered, driven by core PCE expectations around 310% and unemployment nearing 450% [2][3] - The impact of a 25 basis points rate cut is questioned regarding its effectiveness on the S&P 500 and overall market stimulus [4] - The market is less convinced about further rate cuts into next year until a more dovish Fed stance is observed [3][4] Private Credit Market - Vintage risk in private credit deals from 2021-2022, impacted by poor valuations and changing rate environments, is a key concern for the coming year [6] - The conversation around private credit involves both potential losses/defaults and liquidity issues, with some investors misunderstanding the liquidity of these structures [7] - Default rates in private credit have remained relatively low, averaging between 200% and 350%, depending on the source [11] - More frequent marks, specifically monthly marks, are becoming more common in the private credit market, revealing divergence among different managers [11] - Aggregate credit quality has held up, but concerns around marks and liquidity are more significant questions [12] Economic Indicators & Consumer Credit - Insurance costs and auto/home-related expenses remain high, warranting attention for potential credit quality deterioration [9] - Defaults are expected at the margins, particularly in sectors tied to the lower-income consumer and certain forms of consumer credit [8]