On Private Credit & EVs

Retail investors have initiated a run on alternative asset funds focused on the private credit market. Their confidence in the asset class is shot. Melissa discusses three weaknesses in the retail segment of this market—endemic fraud, poor underwriting, and structural valuation opacity. She also provides reasons that these problems don’t represent systemic risk but should remain contained; the same goes for defaults by software company borrowers. … Also: William discusses Chinese electric vehicle makers’ domestic market challenges as well as the problems that have caused Honda to downsize its EV operations.