Constantine Courcoulas 2.1 3 ideas

UK lender MFS collapsed amid fraud allegations; TPG has £44M ($59M) exposure. Jamie Dimon warns that private credit portfolios have ~23% exposure to software companies, compared to <10% in public indices. The MFS collapse is a "canary in the coal mine." If software valuations compress or churn increases (as seen in Block/Duolingo), the collateral backing these private credit loans deteriorates. TPG is explicitly named as having exposure to the MFS fallout. AVOID. The "fat tail" risk in private credit is widening, specifically in portfolios heavy on software debt. The MFS issue remains idiosyncratic and contained to the UK bridging market.