Possible scenario
Redemptions Accelerate
20% Chance
The litigation reinforces investor concerns already visible in Ares redemption requests and Blue Owl funds exceeding 5% redemption pressure. If allocators treat valuation uncertainty as a liquidity risk, non-traded BDCs and interval funds could face larger queues and more restrictive redemption terms.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
Secondary impacts
- Finance -1.6%
Tickers
- -9.0%
Portfolio impact
S&P 500-0.6%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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