00:00 Speaker A
Now, as you know, private credit has been under a lot of scrutiny as of late. This is the part of the market where basically it’s giving loans to private entities and it’s non-bank companies that are doing this.
00:13 Speaker A
One of the most high profile in this business is Blue Owl and the company coming out and saying it is restricting some of the redemptions from one of its retail facing um funds.
00:23 Speaker A
It also sold about $1.4 billion of loans tied to those funds. It did sell them for 99.7% of a part, meaning it did not sell them at a big discount.
00:36 Speaker A
But still, there seems to be some alarm around this action and the restriction of redemptions because there’s high sensitivity around what’s going on in the private credit markets right now and whether there are loans that are soured, who holds them and how broad that sort of holding and exposure is.
00:54 Speaker A
To that point, Blue Owl shares themselves are down sharply today, but anything in private credit or in what are called BDC’s, business development corporations, anything that touches that is down today.
01:07 Speaker A
So you’ve got Blue Owl down, but you have also Blackstone, KKR, Apollo and Carlyle that are getting hit today. So we will continue to track those moves.