The Quiet Squeeze in the Money Markets

Editor's note: As regular readers know, our founder Marc Chaikin has recently warned about cracks beneath the surface of the market... Meanwhile, our friends at our corporate affiliate Altimetry have noticed a troubling sign in one corner of the market that most folks might not think about – private credit.

Editor's note: As regular readers know, our founder Marc Chaikin has recently warned about cracks beneath the surface of the market... Meanwhile, our friends at our corporate affiliate Altimetry have noticed a troubling sign in one corner of the market that most folks might not think about – private credit. Today's essay from Altimetry Director of Research Rob Spivey has the details. It was originally published in the March 13 edition of the free Altimetry Daily Authority e-letter. And in it, Rob explains why regular investors need to be particularly cautious about what's happening with private credit... The Private-Credit Exodus Has Begun By Rob Spivey, director of research, Altimetry Private creditors have always toed the line... They operate somewhere between traditional lending and high-risk equity. These creditors have more room to lend – and chase returns – without strict limits. So they usually take on more risk. Private creditors provide capital when banks aren't willing to lend... due to a business' bad credit or inadequate cash. They also offer higher returns than the bond market, which is a public asset class. But private credit always comes with a catch. And this year, it's under heavy stress... A good chunk of private loans went to software companies, right as AI started threatening Software as a Service business models. Investor appetite is now cooling. And private creditors are leaning on redemption caps to safeguard cash. Now, the industry is trying to attract regular investors. Today, we'll explain why the shift toward retail money is another warning sign that private credit is on shaky ground... Recommended Links: March 25 Bear Market Warning Volatility is spiking... Fear is rising... Hedge funds are on a selling spree... And tech is crumbling. But is this the start of the worst stock losses we've seen in years? Marc Chaikin has called almost every market twist and turn of the past few years, including the 2025 tariff sell-off and the 2020 and 2022 crashes. On March 25, he wants to show you exactly what's coming – and the ONE move you must make to prepare. Learn more here. Here's What You Missed This Week Futurist Eric Fry just went public with a full "Sell This, Buy That" road map – including seven companies to sell and 15 stocks that could soar – from our corporate affiliate InvestorPlace. Eric says this intelligence is critical for surviving and profiting from the "$10 Trillion Market Shock" set to begin in the weeks ahead, and you must move your money immediately. Watch Eric's FutureProof 2026 briefing for full details. You see, private credit has gone from boom to bust. This market had an incredible run from 2022 through 2024. Higher interest rates forced struggling companies to make a choice. Either get private capital (with higher interest) or face potential bankruptcy. That fueled a massive boom. By early 2026, the private-credit market had swelled to roughly $1.8 trillion, up from about $310 billion in 2010. That seemed to prove its resilience. But in reality, it reflected private creditors' desperation, as they stepped into an area banks wouldn't touch. Now, industry experts like Lloyd Blankfein are sounding the alarm... The former Goldman Sachs (GS) CEO is calling out Wall Street for targeting everyday investors, just as the institutions are getting out of private-credit funds. Investor redemption requests are climbing – from around 1% in 2024 to nearly 8% in the first quarter of 2026. That's well above the 5% limit built into many of these funds. Take a look... Keep in mind that institutional investors are withdrawing funds. They're the ones who, historically, have had access to private credit. Private-credit managers can honor redemptions by tapping into cash and selling assets. They can also enforce caps... This would send a message that cash is more limited than many investors had hoped. BlackRock (BLK) recently capped withdrawals from its $26 billion HPS Corporate Lending Fund at 5% after investors requested nearly double that amount. Blue Owl Capital (OWL) recently allowed investors to redeem more than 15% of net assets from a technology-focused fund... before closing the gates. We're also seeing a spike in U.S. private-credit defaults. They climbed to 5.8% in the 12 months leading up to January 2026. That's the highest rate since August 2024. To attract retail money, Wall Street firms are using a few tactics... They're lowering investment thresholds and offering more liquid structures. They're also leveraging exchange-traded funds and business development companies. But Wall Street isn't broadening access out of generosity. It needs fresh buyers... Private credit has earned its reputation... The market is complex and often unstable. And it locks up capital for long periods. Ultimately, private credit is best suited for institutional money. But those investors are now heading for the exit. And as Blankfein highlighted, Wall Street is rushing to get regular people on board. When the "smart money" needs Main Street to keep the machine running, it usually means the easy gains are gone. So retail investors should tread carefully. Think twice before following institutions into the assets they're suddenly so eager to share. Regards, Rob Spivey   Editor's note: The markets have been full of fear and uncertainty recently. That's why Marc is stepping forward with a big warning for regular investors... As he says, a violent shift in the markets has already begun. And as a result, things are likely to get far worse for American investors before they get better. Next Wednesday, March 25, Marc is going on camera to share all the details – including exactly where to move your money to protect yourself. This event is free to attend, but you must reserve a spot in advance. You can do so right here. Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 -0.42% 3 20 7 S&P 500 -0.25% 77 273 149 Nasdaq -0.32% 17 46 37 Small Caps +0.65% 329 1129 423 Bonds +0.62% Energy +1.59% 15 7 0 — According to the Chaikin Power Bar, Large Cap stocks are more Bearish than Small Cap stocks. Major indexes are all bearish. *  *  *  * Sector Tracker Sector movement over the last 5 days Energy +3.22% Information Technology +0.43% Financial +0.33% Utilities +0.09% Real Estate -0.52% Industrials -0.71% Consumer Discretionary -1.63% Communication -1.85% Health Care -2.36% Consumer Staples -2.71% Materials -3.9% *  *  *  * Industry Focus Oil & Gas Equipment Services 22 8 0 Over the past 6 months, the Oil & Gas Equipment Services subsector (XES) has outperformed the S&P 500 by +64.41%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #1 of 21 subsectors. Top Stocks HAL Halliburton Company HLX Helix Energy Solutio XPRO Expro Group Holdings *  *  *  * Top Movers Gainers CIEN +7.09% STX +6.84% BKR +5.62% SLB +5.52% DELL +5.06% Losers FICO -7.52% NEM -6.89% MOS -5.69% IP -5.29% MOH -4.32% *  *  *  * Earnings Report Reporting Today Rating Before Open After Close Earnings Surprises FDX FedEx Corporation Q3 $5.25 Beat by $1.12 ACN Accenture plc Q2 $2.93 Beat by $0.09 DRI Darden Restaurants, Inc. Q3 $2.95 Beat by $0.01 *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at diansastroxz.forex@blogger.com. 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