Lena Petrova: $1.8 Trillion Market Meltdown has Begun as Private Credit Bubble Pops

The private credit market in the United States has experienced rapid growth over the past decade, driven by stricter bank regulations following the 2008 financial crisis. As traditional banks pulled back from lending, private investment funds such as Blackstone and Apollo Global Management stepped in to fill the void, providing loans to midsized and riskier firms. However, this trillion-dollar market is now showing signs of strain, with rising interest rates, widespread defaults, and lack of transparency exposing significant vulnerabilities. According to Fitch Ratings, the default rate in private credit has reached a record high of 9.2% in 2024, the highest…