As a follow up to the JPMorgan announcement from earlier this week that was discussed in a previous update, Bloomberg has shared some interesting insights on the concept of back leverage. The outlet reports that private credit funds are currently finding themselves in a highly defensive position. This is due to an unprecedented wave of investors leaving the space, paired with multiple borrowers failing to meet their debt obligations. Because of these mounting pressures, these funds are now getting ready for a confrontation with the major banks, which have historically acted as their primary lenders.

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