Can the secondary market allay private-credit fears?

PRIVATE CREDIT is the talk of Wall Street—and not in a good way. The share prices of giant listed purveyors of private-credit funds, such as Blackstone and KKR, are down by about a third so far this year. Banks are marking down the value of collateral posted by some borrowers whose loans have been packed into these funds. On April 6th Jamie Dimon, boss of JPMorgan Chase and wise old man of American banking, warned that losses on leveraged private lending would be “higher than expected”. Many investors are maxing out the limited redemptions that fund managers promise them by way of liquidity in an illiquid asset class.