Payment-in-kind loans resemble slow-motion Ponzi scheme; questions when lenders will force liquidations of zombie companies
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Corporations over-leveraged and cannot tolerate refinancing at higher rates; extended 0% financing period created widespread financial mischief beyond just troubled companies
Private credit managers claim locked capital prevents runs, but questions whether this protects system or traps risk until catastrophic failure
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Main concern is innocent Main Street victims whose pensions are heavily invested in private credit and alternative assets that are underperforming