Eurodollar University BREAKING: Moody's JUST Downgraded A MASSIVE Private Credit Fund!
Mar 25, 2026
A Moody's downgrade of a $13B KKR co‑managed private credit fund and what that means for asset quality and funding. Widespread redemptions at Apollo and others signal a bigger withdrawal trend. Managers’ defensive messaging and comparisons to historical runs raise trust concerns. Links to broader risks across leveraged loans, CLOs, and potential spillovers to the economy.
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Demand Transparency From Private Credit Managers
- Do demand transparency from private credit managers instead of accepting reassurances that 'there's nothing to see here.'
- Jeff Snider argues managers should open their books or admit mistakes to stop the self-reinforcing panic.
Massive Redemption Waves Are Forcing Fund Gates
- Large funds are facing concentrated redemption waves with managers gating above contractual minimums, signaling deeper concern.
- Apollo received roughly 11.2% redemption requests and is limiting payouts to ~5% per quarter, provoking more withdrawals.
1893 Bank Run Shows Perception Can Destroy Trust
- Jeff Snider recounts the 1893 bank run example where Robert Owen blamed the press and depositors' emotion.
- Owen nearly faced insolvency despite claiming no wrongdoing, illustrating how perception can topple sound institutions.