economy
March 10, 2026
Boaz Weinstein warns of private credit’s 'financial alchemy,' says problems are multiplying by the quarter
Saba, alongside Cox Capital Management, launched a tender offer to purchase shares in one of Blue Owl's non-traded private credit funds at a 34.9% discount.
TL;DR
- Boaz Weinstein states that problems in private credit are multiplying due to "financial alchemy of promising liquidity that isn't there."
- Investors are experiencing dividend cuts and seeking redemptions from private credit funds.
- Saba Capital Management, alongside Cox Capital Management, is launching tender offers to purchase shares in private credit funds at a discount.
- Weinstein is bullish on large private credit managers like Ares, Apollo, and Blackstone, and has invested in their stocks.
- He believes private credit is trading at pessimistic levels while public credit is overly optimistic, leading him to short public credit.
- Cliffwater is highlighted as a firm to watch closely in the private credit space, with potential redemption rates between 10% and 20%.
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