US Private Credit Stress Hits 2017 High, Raising Bitcoin Questions
MacroDigital Finance
US private credit stress has reached its highest level since 2017, with non-accrual loans hitting a median of 2.8% of cost across the twenty largest listed US Business Development Companies in the second quarter, up from about 2% in late March. Redemption requests at some funds reached 40% of net asset value, though most gates limit quarterly redemptions to 5%, and payment-in-kind arrangements are expanding as borrowers pay interest with more debt. Fitch data shows default rates touching recent highs, concentrated in software and healthcare, while elevated US interest rates and a resilient economy form the backdrop. The stress does not directly affect Bitcoin, but could pressure it in the short term if investors sell liquid assets to raise cash, while a broader credit crunch that forces Federal Reserve easing could become a positive catalyst for Bitcoin.
