Liquidity returning to the banking system, US private credit giants face valuation pressure.

According to the Intellifinancial APP, after a period of time following the epidemic, the bank-led liquidity debt market has almost closed to certain types of borrowers. Now, these markets are becoming active again. With private credit no longer the only choice for corporate financing, Wall Street's direct lending competitors - namely private credit institutions - have seen a decrease in pricing power and fewer projects to invest in. Investors have noticed this and have expressed their judgment by selling listed funds holding loan portfolios.