\u201cIt\u2019s clear that prospectuses talked about the gating mechanism, but I have a feeling that the financial intermediaries, not all of them of course, but enough of them, didn\u2019t explain,\u201d he said Wednesday on a panel at the Milken Institute Global Conference in Beverly Hills.<\/p>\n
The products have been \u201ckept opaque and not granularly described,\u201d he said according to Bloomberg. \u201cThat\u2019s why everybody wants their money back: They\u2019re starting to realize they might be the bag-holder.\u201d<\/strong><\/p>\n Meanwhile, in a sign even more pain is yet to come for the sector, Bloomberg reported that a group of banks led by JPMorgan is expected to shoulder paper losses of more than $500 million on a debt deal for software firm Qualtrics Internationa.<\/strong><\/em> The banks are preparing to use their own balance sheets to fund $5.3 billion of debt for Qualtrics\u2019 acquisition of Press Ganey Forsta. That would make it the biggest \u201chung\u201d deal in the leveraged finance market this year.<\/p>\n https:\/\/www.zerohedge.com\/markets\/gundlach-warns-bagholders-will-lose-money-private-credit-bdcs-slash-asset-values-jpm-faces<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" DoubleLine CEO Jeffrey Gundlach, who has been especially critical of private credit for the past year warning last November that the space \u201chas the same trappings as subprime mortgage repackaging had back in 2006,\u201d raised fresh concerns about financial advisers … Continue reading