Fears about retail-investor participation in private credit are playing out in real time

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• Moody's last year flagged risks it sees from a flood of retail money into private markets.
• Some of that appears to be playing out as retail-focused private credit funds face redemption requests.
• Moody's had warned that retail investors might not be prepared for the illiquidity of private markets.

A scenario some market pros had warned about in private credit is starting to play out.

Analysts at Moody's Investors Service...