FT News Briefing Robert Armstrong on coining the Taco trade
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Apr 3, 2026 
Eric Platt, FT’s US investment editor covering private capital, digs into Blue Owl’s redemption surge and rising unease in private credit. Robert Armstrong, FT financial commentator who coined the Taco trade, tracks how Trump tariff reversals shook markets, why gold outpaced Treasuries, and how Europe gained from the fallout.
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Blue Owl Redemptions Expose Private Credit Fault Lines
- Blue Owl’s redemption spike shows private credit stress is concentrated in valuation fears and software exposure, not yet a 2008-style systemic blowup.
- Investors sought almost 22% out of one flagship fund and above 40% out of a software-lending fund, forcing redemption limits as Blue Owl stock fell nearly 50% this year.
How Robert Armstrong Coined The Taco Trade
- Robert Armstrong coined the taco trade after markets learned Trump often softened tariffs once political or economic pressure mounted.
- Last spring’s sweeping tariff shock quickly gave way to delays, carve-outs, and country and product exceptions, letting equities rebound.
Gold Soared While Treasuries Lost Safe Haven Status
- The biggest tariff-era safe haven winner was gold, while Treasuries lagged because inflation fears kept bond investors cautious.
- Robert Armstrong says central bank de-dollarisation helped spark gold’s rise, then retail buyers turned it into a momentum trade; European markets also benefited from hopes of fiscal expansion.