The Private Credit Crisis Could End EVERYTHING
By Prof. Jeffrey Bierman, CMT
Hey trader,
The largest private credit fund in America just froze investor redemptions.
That was just the beginning.
They then started fire-selling $1 billion in assets.
Most retail traders don’t know and couldn’t care less about private credit. That is about to change.
I am going to show you how that contagion works and why this is just the first fund to fall. I am sitting on 55% cash right now for exactly this reason.
This fund blowing up puts a hard ceiling on the S&P 500 at 7,000 and threatens to drag the entire equity market down with it.
Losses in private credit do not stay in private credit. They jump into equities through the banks that sit on both sides.
Private credit is the shadow lending market underneath the financial system you follow every day. Funds raise money from investors and lend it directly to companies outside public markets with almost no transparency and no liquidity.
When those loans go bad, there is no exchange to sell them on. The money is just gone.
Billionaire hedge fund manager Boaz Weinstein just warned that private credit is “financial alchemy.” He says the problems have just begun and will multiply by the quarter.
Jamie Dimon has already admitted JP Morgan holds what he called “corrupt” private credit-linked funds inside the bank. They are bracing for billions in losses.
Boaz Weinstein runs Saba Capital and just called private credit “financial alchemy.”
He is one of the sharpest old-school hedge fund managers on Wall Street. When he speaks, I lean in and listen.
I helped build the algorithmic logic that powers Wall Street’s trading machines. I engineered it at ThinkorSwim for over 7 million clients.
That technology is called the Genesis COG. It allows algos to fire off multiple orders simultaneously, hijacking stocks for hours at a time with virtually one-sided pressure.
When structural cracks like private credit blow up, those same machines accelerate the selling. The Genesis COG Scanner detects those moves before they hit the tape.
👉 See how the Genesis COG Scanner works →
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