Private Credit Woes Aren’t a Repeat of Financial Crisis, Bank of America Analyst Says

A recent selloff in firms linked to the private credit industry also pushed down Ares Management Corp.; BofA Securities said Ares was thrown out with the bathwater, implying the selloff was overdone. The comment signals that Ares may be unjustly discounted by broad risk-off flows rather than company-specific fundamentals.

Analysis

A recent selloff in firms linked to the private credit industry also pushed down Ares Management Corp.; BofA Securities said Ares was thrown out with the bathwater, implying the selloff was overdone. The comment signals that Ares may be unjustly discounted by broad risk-off flows rather than company-specific fundamentals.