Traci Alloway

High yield funds were weaker, but nowhere near as bad as IG.

And I'd say, what's working?

And they said, oh, gosh, private credit's been working great.

I would say, well, that's wonderful, but that's because they're not taking their marks.

And so they became very, very comfortable because they didn't have to turn around, talk to their existing investors and say, here, you lost a lot of money in this fund.

it looks like you've just earned your yield and your net, your NAV has been very, very stable.

So as a result, their clients were happy.

They were happy.

What happened?

Money poured in.

So as that money poured in, it led to, I think more bad actors is too strong work, but really more bad underwriting, weaker underwriting, more aggressive underwriting because they needed to get that money put to work.

So they would provide more leverage at weaker terms.

I just think it's what people are used to and they've gotten used to in that model over the years as an institution.

Hey, I'll commit to your fund.

Tell me when you need the money and we'll send it in.

And I think that's the way they do it.

Now, exactly how they do it.

Yeah, I don't know if that's a dollar for dollar thing or if they'll do it in just installments over time, but it does help to provide, it gives them the ability to have less drag by having

You know, you go out and raise a $5 billion fund day one, that money's going to sit there.

No, no, I mean, it makes sense.