Business
A Bad Time for Private Credit’s Trust-Me Numbers
Private-credit firms, like private-equity managers, long used opacity to their advantage. Right now it is a liability.
Fear over the outlook for software companies swept through the markets this week. Anthropic unveiled new artificial-intelligence tools to automate tasks for lawyers such as contract reviews and legal briefs. Software stocks tanked, as did shares of media companies, stock exchanges and providers of research and data.
Alternative-asset managers such as Blue Owl Capital and Ares Management were hard hit, as were the likes of KKR and Blackstone. On the credit side, some of the loan books they manage are weighted heavily to software makers and other services providers paying rates befitting junk credits.