Per Moody’s, private credit “reported defaults” are 4.0%. Yet their actual “credit stress group” which includes PIK amendments and maturity extensions is 5.8% - about 45% higher.
PIK is where companies elect to pay interest in equity, instead of cash, usually when cash is tight. This is the REAL default rate.
The number you’re being quoted and the number that matters are not the same number. Question everything.
The real teams who understand these assets will have answers. Those larping, will not.
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We processed an $8m single-day redemption out of nOPAL today. Liquidity working as intended. That’s 6.7% of TVL.
DeFi will have inflows/outflows, and while RWA redemptions aren’t instant, well structured assets will deliver every time.
Set realistic expectations and meet them.
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