Apollo’s co-president John Zito warned that recoveries on some private credit loans to software companies could be 20 to 40 cents on the dollar.

The MFS private credit default and allegations of fraud raise the risk that there are hidden systemic risks from fraud and bad underwriting across the private credit market.

Problems with Blue Owl’s retail-focused private credit fund have triggered worries about valuations across the private credit market.

Electronic Arts’ acquiring group announced plans to potentially defease EA’s outstanding bonds – catching some investors by surprise. Bond prices fell rapidly.

The precedent set in this transaction will affect the relative power of creditors and issuers in stressed situations.