As a crypto trader, I use different softwares and DAPPs in my day to day crypto dealings, and @TakaraLend is among the list.
This is going to be a short review based on my experience so far.
Your updated Sidemen Charity Match line up for this Saturday!
With Fanum and Rubius stepping away, who are you most excited to see?
Watch the Charity Match live on Saturday at 2:10pm BST on YouTube!
Donate with the link in our bio
This is a BIG deal 🚨
Blue Owl just permanently halted redemptions on its $1.7B private credit fund
This isn’t small - they manage $300B+ in AUM
They blame “liquidity mismatch” from withdrawal surge
Question for YOU: Is this isolated issue? Or warning for wider market stress?
🚨BIG WARNING: THE FIRST MAJOR DOMINO HAS FALLEN.
Today, Blue Owl Capital announced that it permanently halted redemptions for Blue Owl Capital Corp II (OBDC II), its $1.7 billion private credit fund aimed at retail investors.
And this is not a small thing.
Blue Owl Capital is a major alternative asset manager with $307.5 billion in AUM.
The reason they are permanently halting redemptions for Blue Owl Capital Corp II (OBDC II) is to manage a "liquidity mismatch" caused by a surge in withdrawal requests.
But isn't this issue related to Blue Owl only?
Well, this is certainly not the case.
Blue Owl’s move to permanently restrict redemptions is signalling broader stress in $3 trillion private credit market.
Here are a few warning signs:
Roughly 40% of direct lending companies are generating negative free operating cash flow.
30% of companies with debt maturing before 2027 have negative EBITDA, making them extremely difficult to refinance.
Default rates for middle-market (MM) borrowers have reached 4.55% and are only rising .
Downgrades have outpaced upgrades for seven consecutive quarters.
If the stress continues in the private credit market, it'll first impact the small businesses for whom the private credit market is a critical funding source.
Additionally, it'll cause refinancing costs to go up and will result in more defaults, which will create a vicious cycle.
The only way to stop this is by lowering interest rates and providing liquidity.
This is probably why the Fed pumped $18 billion into the economy overnight, as more entities are experiencing a liquidity crunch.
But this amount is too small to stop stress in the private credit market.
The Fed would have to go full dovish here, or the dominos will continue to fall.
A great time to be trading with @thinkcapitalcom
We're giving away 5x $10,000 Prop Trading Challenges
No purchase necessary. To enter:
1⃣Like & Retweet this post
2⃣Tag 2 friends + Tell us what you trade?
3⃣Follow @proptraderedge@thinkcapitalcom on X
4⃣Follow @proptraderedge@thinkcapitalcom on IG
Winners picked on Monday
You'll be tagged and notified, must claim within 24 hours or its up for grabs again. Must be 18 and older.