The immediate losses from recent private-credit–backed blowups (Renovo, First Brands, etc.) are not the main story.

The real risk is what these “cockroaches” reveal about information asymmetry, opaque structures, and misplaced trust in private credit and shadow banking.

As more loans go from “marked at 100” to “actually worth zero,” investors start to question all reported marks and vote via redemptions. So, when FITCH asserted that Private Credit is NOT systemic, it validated our research that Private Credit is indeed systemic.

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