Sykon Capital LLC

“Uncorrelated” 🤮 … until it isn’t.
Credit spreads just broke a 2-year downtrend, a clear signal high yield bonds are breaking down.

Private credit isn’t immune. It’s just illiquid and priced slowly.

The illusion of stability?
It’s just delayed pricing.

Private credit isn’t safer.
It just hasn’t been marked down yet.

Illiquidity works great, until it doesn’t.
And if you’re getting paid more, maybe ask why.

Because in stressed markets, the exits get crowded and retail investors holding illiquid instruments like private credit, private REITS, bank loans, and other esoteric securities that investors get sold under the guise of being “uncorrelated”, are left holding the bag.

If you thought private credit was a safe haven, it might be time to rethink what “uncorrelated” really means.

A quiet line on the chart is being crossed.

The S&P 500 is now below its 200-day moving average, a signal that is rising.

Buy & hope isn’t a .

You need a .