Credit ratings, Tett and Private Credit. 2008
A record level of private-equity investments are stuck in funds limping along past their intended lifespans. Often known as zombie funds. Fund managers haven’t been able to sell their remaining assets.
The net asset value of U.S. private-equity assets stuck in funds at least a decade old reached an all-time high of $348.5 billion at the end of 2025, according to PitchBook data.
That is 3.5 times the amount in 2015 and more than 100 times that of 2005.
Wall Street Journal 21 July 2026
Erik Gordon, an American finance professor, posed a pointed question relating to Fool’s Gold, my book about the 2008 financial crisis: should we now feel some déjà vu?
Not because of what is happening with tech stocks nor with Wall Street demands for deregulation. Rather, the issue (once again) is credit ratings.
Before the 2008 crisis, there was a proliferation of financial products that could be used for regulatory arbitrage, playing with the Basel rules to enable banks to reduce the capital reserves they held against defaults.
Credit ratings were crucial to this.
Gillian Tett Financial Times 19 June 2026
Gillian Tett
https://englundmacro.blogspot.com/2020/07/gillian-tett-en-av-mina-gurus.html
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