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PIMCO says private equity "a crisis of really bad underwriting.”

WABACWABAC
in Other Investing
Bloomberg via Yahoo has the story.

TLDR:

“There is a reckoning going on right now,” Christian Stracke, president at the $2.3 trillion asset manager, said in a March 10 podcast alongside Gregory Hall, the firm’s head of US global wealth management. “It’s not just a crisis of confidence, it’s a crisis of really bad underwriting.”

snip\

In the latest sign of strains, JPMorgan Chase & Co. is restricting some lending to private credit funds after marking down the value of certain loans in their portfolios, according to a person familiar with the matter. This week also brought news that Cliffwater LLC was coming under pressure, with its $33 billion flagship private credit fund facing redemption requests.

The latest developments come after BlackRock Inc. last week capped withdrawals from its HPS Corporate Lending Fund at 5% after investors sought cash of nearly double that amount. Just days before that, Blackstone Inc. allowed investors to redeem a record 7.9% of shares from its flagship fund, known as BCRED.
Yikes. It's gonna be tough to calm that market in the current environment.

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