{
  "id": 12831093,
  "title": "Bond market sell-off prompts uptick in private credit shorts",
  "url": "https://urgent.news/2026/10/08/bond-market-sell-off-prompts-uptick-in-private-credit-shorts-12831093",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-08T08:40:00.000Z",
  "source": {
    "name": "Hedgeweek",
    "slug": "hedgeweek",
    "url": "https://hedgeweek.com/news/bond-market-sell-off-prompts-uptick-in-private-credit-shorts"
  },
  "original_language": "en",
  "account": "Hedge funds and investors are betting against private credit markets as a prolonged drop in global bonds raises concerns about their stability, according to a Bloomberg report. While direct shorting of private credit assets is challenging, traders can employ other strategies such as shorting listed vehicles and proxies like business development companies (BDCs) and collateralised loan obligations. Market data indicates that net short selling increased significantly in September, reaching $88.6m in the first half, more than double August's $44m and on par with March's $102m peak. Share sales shortened also surged, reaching 6.4 million by mid-September, up from 2.9 million at the end of August. Short interest as a percentage of assets under management in ETFs hit a record 3.4% in March before dropping to 2.1% in August and recovering to 2.7% in mid-September. Major banks like Goldman Sachs, JPMorgan, and Bank of America are offering clients the ability to take bullish or bearish positions on private credit through baskets of publicly traded companies, including alternative asset managers, BDCs, and financial institutions with private credit operations, though the extent of trading activity in these products remains undisclosed.",
  "summary": "Hedge funds and other investors are increasing bearish bets against private credit as a prolonged selloff in global bonds raises fresh questions about the resilience of the $1.8tn market, according to a report by Bloomberg. Although private credit assets are not easily shorted directly, traders can take positions against listed vehicles and other proxies, including business development companies…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Private Equity Wire",
        "title": "Bond market sell-off prompts uptick in private credit shorts",
        "url": "https://urgent.news/2026/10/08/bond-market-sell-off-prompts-uptick-in-private-credit-shorts",
        "published": "2026-10-08T08:24:21.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}