Remember how banks bet against subprime mortgages with credit default swaps in 2008? That's now happening with private credit. JPMorgan, Barclays, Morgan Stanley & Citigroup have started trading CDS on Blackstone, Apollo & Ares funds S&P just launched an index specifically to track these private credit vehicles & banks started trading CDS on the underlying funds within days. In 2008, it was subprime mortgage bonds. In 2026, it's private credit funds. Wall Street is building the tools to short its own industry. Again.
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