A fund holding consumer and small-business loans made by companies including Affirm (AFRM) and Block (XYZ) is the latest corner of the private-credit market to come under stress
- Stone Ridge Asset Management told clients in the fund last week that recent redemption requests were so high that it would only honor 11% of the amount investors wanted back, according to an investor update.
Context
The private credit market, particularly funds tied to consumer and small-business loans, is showing signs of stress, as evidenced by Stone Ridge Asset Management's inability to meet redemption requests. With only 11% of requested redemptions being honored, this raises concerns about liquidity and the overall health of investments tied to consumer credit. Traders should monitor this situation for broader implications on market sentiment and potential risk aversion in related asset classes.
Trade the TapeGet this analysis live, the moment it breaksNewsquawk's real-time dashboard delivers market-moving headlines and instant context to your desk before the rest of the market reacts.
Open Dashboard#IMPORTANT#EU SESSION#US SESSION#GLOBAL NEWS