The private credit market is facing a "Roach Motel moment." BlackRock is curbing withdrawals from a $26B fund. Blue Owl (OWL) is down ~60% from highs (in this 2026 timeline) due to exposure to troubled lenders like Century Capital. Private credit relies on the illusion of liquidity and stable book values. When gates go up (limiting withdrawals), it triggers a run on confidence. If investors cannot exit, they devalue the manager. Furthermore, high rates are finally breaking the underlying borrowers, leading to defaults that these firms can no longer hide. Short the asset managers heavily exposed to private credit fees and carry. Fed cuts rates aggressively, bailing out the underlying borrowers.