Traci Alloway

And I do think like we're probably not even close to 2008 style crisis, right?

Like it just can't be.

But there are probably some hidden issues within there that are going to start to appear.

But setting all of that aside, I think one of the challenges of private credit having these continued crises, or at least being in the headlines all the time, is...

It is going to have a macroeconomic impact.

If you think of it as this market that is now bigger than the junk bond market, like the junk bond market is an important source of financing for companies all around America.

And so is private credit.

So if you start to see that particular asset class slow down, like at a minimum, that's basically a credit crunch for a bunch of companies.

Their situationship.

Absolutely.

But I do think the sequencing also matters when it comes to raising money because as they pointed out this idea that like you're going to start a fund and you immediately have to start like going out and sourcing stuff to buy with that money and it puts pressure on you to get like what you can get.

Right, but you still need to get back to some form of normalcy at some point.

But it's obviously incredibly helpful.

All right, shall we leave it there?

This has been another episode of the All Thoughts Podcast.

I'm Traci Allaway.

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