Anonymous25 days ago
Goldman Sachs is quietly pitching hedge fund clients on total return swap strategies to short corporate loans, particularly those backing AI-disrupted enterprise software companies acquired by private equity firms. The move comes amid mounting stress across the private credit landscape — highlighted by Blue Owl Capital's unprecedented redemption halt, PIMCO's warning of a "full-blown default cycle," and nearly $47 billion in tech company loans trading at distressed levels — raising sharp questions about Wall Street's dual role as both lender and enabler of bets against borrowers.