CDS traders show little appetite for betting against private credit market
By
Christopher Whittall, Natasha Rega-Jones
Summary
Despite widespread concerns about private credit markets, traders in the $11 trillion credit default swaps (CDS) market are not betting against private credit. The rollout of S&P Global's new "CDX financials" index was expected to enable short bets on private credit due to fears about exposure to AI-vulnerable software companies, but this has not materialized. Improved sentiment towards funds has undermined CDS short positions, and the anticipated trading uptick in CDS linked to private credit vehicles from firms like Apollo, Ares, and Blackstone has not emerged.
Source
bskyCDS traders show little appetite for betting against private credit marketifre.comKey quotes
· 3 pulledApril's rollout of S&P Global's new 'CDX financials' index was heralded as a prime opportunity for traders to bet against private credit amid concerns over the industry's exposure to AI-vulnerable software companies.
Far from emerging as the next 'big short', though, bank dealing de...
Improved sentiment towards funds undermines CDS shorts
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