Private Credit Default Rates Just Hit The Point Of No Return

Redemption requests for Apollo Debt Solutions hit 16.8% in Q2, signaling a potential tipping point for the private credit market.

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Source: DepositPhotos

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 many 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 that last quarter, redemption requests were already high at around 11%.
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