Oil: prices continue to rise – Brent nears $85 and gas surges by 5%

(Il Sole 24 Ore Radiocor) - Oil prices continue to rise amid ongoing uncertainties over the Strait of Hormuz. At 11.00 Italian time, Brent crude was trading at just under $85 a barrel ($84.47), up 1.13 per cent, whilst WTI rose to $79.11 (+1.18 per cent). Gas prices have surged, rising by almost 5 per cent (+4.99 per cent) in Amsterdam to 58.32 euros per megawatt-hour.

Private credit is showing increasingly clear signs of strain, despite statements to the contrary from some of the major fund managers who are trying to put a turbulent year behind them.

According to an analysis by the Wall Street Journal, the recent quarterly reports from funds managed by the sector’s leading companies have highlighted a deterioration in the quality of loans and returns for investors.

Among the funds managed by Ares Management, Blackstone, Blue Owl Capital and Golub Capital, loan defaults have reached their highest level since at least 2021. The shares in these funds are listed on the stock exchange, which means they are required to keep shareholders regularly updated on their investments.

So far, bad debts have mainly been emerging amongst companies in the healthcare sector, such as the dental services provider Affordable Care, or amongst companies affected by rising oil prices, including the plastic film manufacturer Loparex. The concern for analysts and fund managers is that insolvencies could spread to software companies, which account for 20 per cent or more of the loans in many funds.