Executive Summary
Noetica AI's proprietary database reveals a stunning 84% of credit deals now include lean subordination terms—the highest ever recorded and a 23-point quarterly jump. This isn't about preventing defaults; it's about controlling recovery when bankruptcy happens. Meanwhile, Meta's $30 billion Hyperion deal with Blue Owl exemplifies a dangerous new structure: 90% leverage on immature AI data center assets kept off-balance sheet through special purpose vehicles. The guest's own data shows creditors ...
Key Investment Opportunity
Short the Private Credit Bubble Through Blackstone
Blackstone represents the purest play on private credit's coming reckoning. The firm has grown assets under management from $618 billion to over $1 trillion largely through private credit strategies that have never faced a real stress test. Dan Wertman's data shows lenders are positioning for recove...
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