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Blocked Exits Intensify The Urge To Get Out

By Seeking Alpha March 04, 2026 Bearish
Blocked Exits Intensify The Urge To Get Out
After the 2008 financial crisis, more than a decade of zero-interest rate policies drove an explosion in private credit products and funds that were initially marketed to institutions and pensions under the oxymoron of safe ‘high-yield'. Fast forward to 2025, and investors began trying to exit private credit funds as they took losses on bad loans, and concerns intensified that AI would wreak havoc on the software companies they had financed.
After the 2008 financial crisis, more than a decade of zero-interest rate policies drove an explosion in private credit products and funds that were initially marketed to institutions and pensions under the oxymoron of safe ‘high-yield'. Fast forward to 2025, and investors began trying to exit private credit funds as they took losses on bad loans, and concerns intensified that AI would wreak havoc on the software companies they had financed.