Private Credit Rocked By UBS Shock Outlook: Record "Cascading Defaults" And Widespread Contagion

Around the time we reported on private credit's massive exposure to software one month ago, which sparked a fresh, and even more furious, selloff in private credit stocks and especially Blue Owl which has since gone on to gate retail investors in one of its main funds, UBS's head of credit strategy at UBS Investment Bank Matthew Mish was busy laying out a worst-case scenario for defaults, disruption and dispersion in private credit (note available to pro subscribers), which was already especially dismal. Overnight, his outlook just became outright apocalyptic