00:00Silas, it's probably notable that Blackstone shares are higher after this because we've seen a lot of these redemption flows
00:06come out and usually the stocks are hit.
00:08What is maybe different this time for Blackstone?
00:11Well, I think, I mean, you know, this is the second series of the private credit BDC angst story.
00:19And so I think maybe quite a lot of the pressure on share prices may have been kind of priced
00:25through through the first quarter.
00:28And I think with Blackstone, I mean, we'll see how the day plays out.
00:31But I mean, the the the redemptions that they had were at 10 percent, which is kind of lower than
00:35a lot of the other industry peers that they have.
00:39I mean, Cliffwater came in at 17 percent earlier this earlier this week.
00:42It's a few more reporting over over the course of the next few weeks.
00:46So that may give some indication as to why. But I mean, yeah, let's see how let's see how the
00:50day progresses.
00:51I wonder about for one thing, Silas, it seems to me that there's some prisoners dilemma at work here.
00:58Danny has pointed out, you know, I should just say that Scott Goodwin of diameters for thinking that there's a
01:04good win as well.
01:06Yeah. Yeah. I don't want to take credit for it.
01:09All right. But I mean, the point is some people are going to want out just because they think others
01:12will want out and they want to get ahead, get ahead of it.
01:14And I wonder if also a lot of the money that's taken out is still earmarked for private credit.
01:19So it's just going to go back into maybe a newer, better vintage.
01:23Is that the case or are people actually lowering their allocations to our institutions, lowering their allocations to private credit?
01:31Yeah. I mean, it was actually one of my favorite lines from last yesterday's credit forum when Danny interviewed Scott
01:37Goodwin and he spoke about the prisoner's dilemma,
01:39a.k.a. you know, this this problem for retail investors, which is like if I don't redeem and everyone
01:45else redeems and I'm the one kind of left holding the bag.
01:47And I do think that is, you know, having spoken to a few retail ish investors, that is something that
01:52they kind of that they think about.
01:55Look, private credit performance, despite all of the, you know, the the kind of clear difficulties that are going on
02:03in the market, private credit performance by and large has still remained pretty solid.
02:06And I think, you know, as long as that maintains itself, Blair Jacobson was on earlier earlier today.
02:13And that was his point that, like, you know, they need to demonstrate their their kind of resilience through performance.
02:19And if that carries on, then I then I would suggest that, you know, in the next quarter, they may
02:24see a bit of an easing off of of of of of of retail retail redemptions.
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