Doublelines Gundlach says a bottom tier just market down its Red Lobster equity position 98% overnight; oddly that equity position was in a "private credit" fund
Importance
Level 1
- Disturbingly, that fund's large Red Lobster debt holding is market at par, even though the equity bas basically wiped out overnight, RUN.
- Amazingly, and extremely telling, that bottom tier private credit sponsor has, per Bloomberg, marked UP the value of its large Red Lobster debt position five quarters in a row! Marked it UP?!?! Possibly PIK “magic” in action.