The most important number in private credit right now is not a default rate. It’s not a dividend yield or the size of the market. It’s **16.8%**. That is how much of Apollo Debt Solutions’ outstanding shares investors asked the firm to buy back in the second quarter. The reason that number is such a big deal is because last quarter, redemption requests were already high at around **11%**. So this is not fading or stabilizing. The bust is accelerating. Eurodollar University&#x27;s Money &amp; Macro Analysis ---------------------------------------------------------------------------------- What if your gold could actually pay you every month… in MORE gold? That’s exactly what Monetary Metals does. You still own your gold, fully insured in your name, but instead of sitting idle, it earns real yield paid in physical gold. No selling. No trading. Just more gold every month. Check it out here: https://monetary-metals.com/snider ---------------------------------------------------------------------------------- Webinar June 2026: Why Smart Investors Keep Missing Every Major Economic Turning Point It isn&#x27;t that they&#x27;re buying the wrong assets. They&#x27;re using a broken map of the monetary system — and getting it wrong leads to catastrophic decisions. Let&#x27;s fix that. Sunday, June 28 @ 5:30pm ET. Sign up below. https://webinar.eurodollar-university.com/home ---------------------------------------------------------------------------------- https://www.eurodollar.university Twitter: https://twitter.com/JeffSnider_EDU I’ll also be active on Bravais Social - a new AI-centered social network designed for professionals and knowledge workers. The platform aims to bring together a wider range of tools and functionalities tailored specifically for professional interaction, research, and knowledge exchange in one place. You can find me here: https://bravais.social/profile/edu

Private Credit Redemptions Just Crossed the Line Of No Return

Eurodollar University

# Full Transcript

**Podcast:** Eurodollar University

## Participants

- **Jeff Snider** (None)

## Transcript

The most important number in private credit right now is not a dividend yield or a default rate. It's not some net asset value or the size of the marketplace. It's 16.8%. That is how much of Apollo Debt Solutions' outstanding shares investors wanted the firm to buy back in the second quarter.

And the reason why it's such a big deal is because in the first quarter, they only asked for 11% back, which means this thing is not stabilizing. It is still escalating and it is only the start of the story. Apollo's president, Jim Zelter, said in May that he didn't think the withdrawals were a one shot. He also said he didn't expect a dramatic increase in the exit requests and that they're, quote, maybe even a little bit of an increase.

Well, that prediction has already been overwhelmed by reality. This was not a little bit of an increase. Going from 11% to 16.8% is another major escalation. And it matters because private credit is, as we've been saying, built on confidence. The industry says fundamentals are healthy and investors keep saying, why can't I get more of my money out?

So here's the big question. Why aren't investors buying the reassurances? And we see this all over the industry, whether in publicly traded BDCs like Blue Owl Capital, which keep hitting new lows, or here in Apollo's case with a non-traded vehicle. Investors are fleeing in bigger and bigger numbers. Think about it this way. If a money management firm had one out of six of its clients calling them up this quarter and wanting to fire them,

the natural reaction wouldn't be that this is somehow clients overreacting. It would be to take a hard look at why this is taking place. And since this is happening all over the industry, the explanation has to apply to everyone or nearly everyone. The assets are likely rotten or enough of them anyway, and people know it. Now, what people can't see is why this matters for anyone who's not a hedge fund investor who maybe made some bad decisions.

The channel for contagion is what this is all about. It's not about Apollo's funds. It's about what Apollo is doing that you don't really necessarily know about. So we have information on the contagion channel, what's taking place, why these redemptions matter, and how they fit into that process. Because like I said, there is a lot going on here that you don't see. But let's start with the basic facts, the latest one.

Apollo Debt Solutions disclosed in the second quarter of 2026 its gross inflows, that's money coming in, totaled about $300 million. So some people are still adding new money. But during the same period, investors submitted a repurchase request equal to approximately 16.8% of outstanding shares. Like I said, one in six of Apollo Debt Solutions clients are saying, we want to fire you, we want our money back.

Now this fund isn't small, it's about $26 billion, and Apollo is not ...

Private Credit Redemptions Just Crossed the Line Of No Return

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Private Credit Redemptions Just Crossed the Line Of No Return

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.