Barclays has significantly pulled back from making asset-backed loans to small and medium-sized companies, now only lending to large corporates.

An estimated 11% of loans to private equity-backed software companies will need to be refinanced in 2025, with another 20% needing refinancing in 2026.

In the most recent quarter, Blackstone honored a 7.9% redemption notice from its private credit fund, exceeding its 5% cap.

The private credit market has grown from a $300 billion per year market 10 years ago to nearly a $2 trillion per year market today.

Most private credit funds sold to retail investors have a 5% quarterly redemption cap.

Steve Eisman believes that private credit funds, which are inherently illiquid, should generally not have been sold to retail investors.

Direct lending, which constitutes 80% of the private credit market, primarily involves private credit funds lending to private equity firms for company acquisitions.

The U.S. banking system is better capitalized and has more liquidity on its balance sheets than at any point in its history.

Approximately 25% of all direct lending is to software companies that were acquired by private equity firms between 2018 and 2022.

Steve Eisman predicts that a tightening in the private credit market could push the U.S. economy into a recession, but it would be a 'garden variety' recession, not a 2008-style financial crisis.

The KKR private credit fund was downgraded by Moody's because its non-accrual rate reached 5.5%, which is likely the highest in the industry.