Private Credit Strain Returns as Oil Risks Build

Private credit is back in focus as default rates rise, loan stress builds, and investors try to figure out whether this is just a normal credit cycle or the start of something bigger.

Chuck Zodda and Mike Armstrong break down why private credit is showing renewed signs of strain, how higher interest rates have pressured borrowers, why software exposure could create additional risk, and who may ultimately be holding the bag if problems spread. They also discuss President Trump’s low-key approach to Iran, why oil flows through the Strait of Hormuz remain under pressure, and how the conflict could become a bigger economic problem if global oil buffers keep shrinking. Plus, they look at private equity’s growing backlog of unsold companies, China’s push to use its capital markets to compete with the U.S. in AI, and Ford’s plan for a lower-cost electric pickup truck.