Simon Jack

And so they've had – some of those funds have either had to say, sorry, you can't have your money out.

You want all your money out?

You can have 5% of it now.

You can have 5% of it, blah, blah, blah.

Or they've marked up big losses and in some cases gated their funds completely, which means like, I'm sorry, until further notice, you can't get your money out.

Now, of course, when people see that, they go, well, I better get my money.

You know what I mean?

Those things, you know, like we see a run on a bank –

It's like a slow motion one of those.

And that is the distress we're seeing in the private credit market.

Now, private credit is quite small compared to the overall market, but it's as big now as the US subprime mortgage market was in 2008.

Right.

Just because it's small doesn't mean it doesn't have tentacles that spread out in other places.

Correct.

Because once people think you've got some nasties lurking somewhere, they go, well, I'm Bank A, I might not lend money to Bank B, because I think Bank B has lent money to one of these private credit funds, and I don't know what... So basically, fearful whispers get around.

Now, we're not at that stage yet.

I want to make that perfectly clear.

Just to be clear, yeah.

You know, is there distress in some parts of the financial system?

Yes, there is.