Insights

SpaceX shares trading below their IPO price has attracted attention, but the more instructive signal may be found in its debt. The company recently completed a US$25 billion, five-tranche bond offering. Its 2056 bond has subsequently weakened, with its yield moving towards 7.5%. Meanwhile, Goldman Sachs’ hyperscaler credit basket has widened to its broadest level since its launch in February. Together, these suggest that 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝗮𝗿𝗲 𝗯𝗲𝗴𝗶𝗻𝗻𝗶𝗻𝗴 𝘁𝗼 𝗿𝗲���

Business times article: https://www.businesstimes.com.sg/companies-markets/banking-finance/private-credit-keeps-us14-billion-trapped-bid-outlast-storm A follow up to our earlier post on the misalignment between investor expectations, asset duration and liquidity terms. A recent Bloomberg report noted that more than US$14.5 billion of investor capital remains queued across over a dozen private credit funds, compared with US$8.6 billion successfully redeemed. Roughly $1.70 loc

Singapore investors are becoming more deliberate in how they build portfolios. As highlighted in an article by The Business Times this week, a recent survey found that 𝗱𝗼𝘄𝗻𝘀𝗶𝗱𝗲 𝗽𝗿𝗼𝘁𝗲𝗰𝘁𝗶𝗼𝗻 and 𝗰𝗮𝗽𝗶𝘁𝗮𝗹 𝗽𝗿𝗲𝘀𝗲𝗿𝘃𝗮𝘁𝗶𝗼𝗻 have emerged as the most important portfolio priorities for Asia-Pacific investors. In Singapore, 64% of investors now rank capital preservation as a top priority, well above the 44% regional average. This shift is taking place al

Private credit's growth in the US has been closely tied to private equity buyouts, where sponsors often backed asset-light, high-growth technology companies. Over time, this has created meaningful sector concentration in software and tech across many private credit portfolios, where exposure to the software sector is estimated to be approximately 20-35%. A recent The Wall Street Journal article also flagged that some of the largest US private credit funds may carry 𝗴𝗿𝗲𝗮

https://www.businesstimes.com.sg/wealth/wealth-investing/separating-signal-noise-private-credit The main issues in the US private credit market today are not the fundamentals of their underlying investments: it is the 𝗺𝗶𝘀𝗮𝗹𝗶𝗴𝗻𝗺𝗲𝗻𝘁 𝗯𝗲𝘁𝘄𝗲𝗲𝗻 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗲𝘅𝗽𝗲𝗰𝘁𝗮𝘁𝗶𝗼𝗻𝘀, 𝗮𝘀𝘀𝗲𝘁 𝗱𝘂𝗿𝗮𝘁𝗶𝗼𝗻, 𝗮𝗻𝗱 𝗹𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝘁𝗲𝗿𝗺𝘀. Private credit assets are inherently longer-dated without a ready liquid market, with structures designed to su

𝗧𝗵𝗲 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝗶𝗻 𝗔𝘀𝗶𝗮 𝗽𝗿𝗶𝘃𝗮𝘁𝗲 𝗰𝗿𝗲𝗱𝗶𝘁 𝗶𝘀 𝗻𝗼𝘁 𝗮𝗯𝗼𝘂𝘁 𝘁𝗮𝗸𝗶𝗻𝗴 𝗼𝗻 𝗶𝗻𝗰𝗿𝗲𝗺𝗲𝗻𝘁𝗮𝗹 𝗿𝗶𝘀𝗸 𝘁𝗼 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗲 𝗿𝗲𝘁𝘂𝗿𝗻𝘀. Rather, it lies in being appropriately compensated for disciplined lending in an underserved market. As Howard Marks observed, “If we avoid the losers, the winners will take care of themselves,”, and as Charlie Munger noted, “The first rule of compounding: never interrupt it unnecessarily.” In t

Bloomberg article: https://shorturl.at/25Svc Recent developments involving redemption halts and asset sales in a large private credit platform highlight a broader structural issue, that is 𝘁𝗵𝗲 𝗿𝗮𝗽𝗶𝗱 𝗽𝗿𝗼𝗹𝗶𝗳𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗲𝘃𝗲𝗿𝗴𝗿𝗲𝗲𝗻 𝗽𝗿𝗶𝘃𝗮𝘁𝗲 𝗰𝗿𝗲𝗱𝗶𝘁 𝘃𝗲𝗵𝗶𝗰𝗹𝗲𝘀. These structures are often positioned as offering the best of both worlds: private credit returns with regular redemption windows. 𝗛𝗼𝘄𝗲𝘃𝗲𝗿, 𝘁𝗵𝗲𝗿𝗲 𝗶𝘀 𝗮𝗻 𝗲𝘀𝘀𝗲

CNBC ARTICLE: https://shorturl.at/c3DDA Recent developments involving redemption halts and asset sales in a large private credit platform highlight a broader structural issue, that is 𝘁𝗵𝗲 𝗿𝗮𝗽𝗶𝗱 𝗽𝗿𝗼𝗹𝗶𝗳𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗲𝘃𝗲𝗿𝗴𝗿𝗲𝗲𝗻 𝗽𝗿𝗶𝘃𝗮𝘁𝗲 𝗰𝗿𝗲𝗱𝗶𝘁 𝘃𝗲𝗵𝗶𝗰𝗹𝗲𝘀. These structures are often positioned as offering the best of both worlds: private credit returns with regular redemption windows. 𝗛𝗼𝘄𝗲𝘃𝗲𝗿, 𝘁𝗵𝗲𝗿𝗲 𝗶𝘀 𝗮𝗻 𝗲𝘀𝘀𝗲𝗻𝘁���

Bloomberg article: https://www.bloomberg.com/news/features/2025-11-30/the-260-billion-mom-and-pop-fixed-maturity-funds-distorting-the-credit-market 𝗙𝗶𝘅𝗲𝗱-𝗺𝗮𝘁𝘂𝗿𝗶𝘁𝘆 𝗯𝗼𝗻𝗱 𝗳𝘂𝗻𝗱𝘀 𝗵𝗮𝘃𝗲 𝗴𝗮𝗶𝗻𝗲𝗱 𝗽𝗼𝗽𝘂𝗹𝗮𝗿𝗶𝘁𝘆 𝘄𝗶𝘁𝗵 𝗿𝗲𝘁𝗮𝗶𝗹 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝗮𝘀 𝘀𝘂𝗯𝘀𝘁𝗶𝘁𝘂𝘁𝗲𝘀 𝗳𝗼𝗿 𝗳𝗶𝘅𝗲𝗱 𝗱𝗲𝗽𝗼𝘀𝗶𝘁𝘀. A recent Bloomberg article highlights how more than US$260 billion has flowed into these funds. Their appeal is straightforward. Fixe

Bloomberg article: https://shorturl.at/kBd52 The abrupt collapse of Renovo raises a familiar but important question for private credit investors: 𝐇𝐨𝐰 𝐰𝐞𝐥𝐥 𝐝𝐨 𝐦𝐚𝐫𝐤𝐬 𝐫𝐞𝐟𝐥𝐞𝐜𝐭 𝐫𝐞𝐚𝐥𝐢𝐭𝐲 𝐰𝐡𝐞𝐧 𝐥𝐢𝐪𝐮𝐢𝐝𝐢𝐭𝐲 𝐢𝐬 𝐥𝐢𝐦𝐢𝐭𝐞𝐝 𝐚𝐧𝐝 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐢𝐬 𝐮𝐧𝐞𝐯𝐞𝐧? Renovo’s debt was still 𝐦𝐚𝐫𝐤𝐞𝐝 𝐚𝐭 𝐩𝐚𝐫 at the end of September - even though fundamentals had been weakening for some time. Weeks later, it was 𝐰𝐫𝐢𝐭𝐭𝐞𝐧 𝐝���

Business Times article: https://www.businesstimes.com.sg/wealth/juiced-out-bonds-pushing-money-elsewhere An article featured in The Business Times highlights a growing challenge for global bond investors - 𝘆𝗶𝗲𝗹𝗱𝘀 𝘁𝗵𝗮𝘁 𝗮𝗽𝗽𝗲𝗮𝗿 𝗵𝗶𝗴𝗵 𝗶𝗻 𝗻𝗼𝗺𝗶𝗻𝗮𝗹 𝘁𝗲𝗿𝗺𝘀 𝗯𝘂𝘁 𝗮𝗿𝗲 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗶𝗻𝗴𝗹𝘆 𝘂𝗻𝗮𝗽𝗽𝗲𝗮𝗹𝗶𝗻𝗴 𝗮𝗳𝘁𝗲𝗿 𝗶𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗿𝗲𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗿𝗶𝘀𝗸 𝗮𝗿𝗲 𝗰𝗼𝗻𝘀𝗶𝗱𝗲𝗿𝗲𝗱, i.e. “carry” no longer compensates a

New York Times Article: https://www.nytimes.com/2025/10/10/business/first-brands-bankruptcy-wall-street.html 𝙁𝙤𝙪𝙧 𝙠𝙚𝙮 𝙥𝙤𝙞𝙣𝙩𝙨 𝙖𝙗𝙤𝙪𝙩 𝙥𝙧𝙞𝙫𝙖𝙩𝙚 𝙘𝙧𝙚𝙙𝙞𝙩 𝙞𝙣𝙫𝙚𝙨𝙩𝙞𝙣𝙜 𝙛𝙧𝙤𝙢 𝙩𝙝𝙚 𝙁𝙞𝙧𝙨𝙩 𝘽𝙧𝙖𝙣𝙙𝙨 𝙛𝙖𝙡𝙡𝙤𝙪𝙩, 𝙬𝙝𝙞𝙘𝙝 𝙬𝙚 𝙝𝙖𝙫𝙚 𝙖𝙡𝙬𝙖𝙮𝙨 𝙪𝙣𝙙𝙚𝙧𝙨𝙩𝙤𝙤𝙙 𝙖𝙨 𝙚𝙨𝙨𝙚𝙣𝙩𝙞𝙖𝙡𝙨: 1. 𝗧𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝗰𝘆 𝗮𝗻𝗱 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗮𝗹 𝗰𝗹𝗮𝗿𝗶𝘁𝘆 𝗮𝗿𝗲 𝗼𝗳 𝘂𝘁𝗺𝗼𝘀𝘁 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝗰𝗲 Working capital or invoi