Private BDC Liquidity Bottlenecks Do Not Pose a Systemic Financial Risk
Alan Waxman · What 100 Years of American Finance Tells Us About Today · Invest Like The Best · Apr 8, 2026 · at 37:01
Sixth Street CEO Alan Waxman assesses whether redemption friction in retail private credit and perpetual BDCs poses a systemic threat to the broader financial system.
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“I don't think this is a systemic issue yet for two reasons. One, we're only five years into this, so it's early. And the second, second thing, at least for now, there's a pretty strong economic backdrop. There's definitely risk to it. So I don't think this is systemic. It could turn out that way, but I don't, that's actually not what I think is going to happen.”
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