Tune in to episode 57 for the whole story.

Added: 2026-05-01

[00:00:00]If you compare this back to the GFC, some of the the the stuff that is high yield or let's just say non-investment grade, which in theory should be higher risk, that used to be inside a highly leveraged institutions.

[00:00:13]Today, that is sitting either in unlevered um credit funds or in lightly leveraged credit funds. And this is, you know, the average credit fund is probably levered one to one. And so every dollar that's moved out of uh of of the the traditional banking system into these credit funds has de-risked it.

[00:00:34]So, who is at risk for if there were to be higher losses in say software?

[00:00:39]It would be the equity investors, which are actually set up to take that loss, or it would be um these credit funds that are traditionally structured as higher yielding credit funds that are not that levered that are not that levered and that are set up to, you know, be able to handle some variability in outcome.