Hoffman: Private credit panic is emotional liquidity mismatch, not bad loans
Liz Hoffman · OpenAI's TBPN Mistake, SpaceX’s $2 Trillion IPO?, Iran Disables Amazon Infrastructure · Apr 6, 2026 · at 47:47
Semafor's Liz Hoffman analyzes why retail redemption runs on private credit funds do not necessarily reflect underlying loan defaults.
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“I think, like, most of the loans are probably fine, and by the way, Not to like you're, I'm sure your listeners understand a capital stack, like the credit, this is senior secured credit, which is the safest place to be in any kind of corporate financial structure. If you think there's a problem there, the equity underneath it, whether that's, this is mostly private equity, is like a zero. So it is weird, you know, if you imagine this is like a flood waters coming in, it's weird to have the people on the top floor panicking first before the people on the ground floor, and yet that's what's happening. And so that makes me think that this is sort of more emotional and technical and less about the loans themselves might be bad, but I don't actually think that that is what is informing what's happening now.”
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