Lotfi Karoui

“Absent a recession, the payment shock ahead is likely much smaller than the one they have already navigated,”

Lotfi Karoui · said date not stated · reported 2026-09-11

Karoui said much of the adjustment to higher borrowing costs has already taken place in private credit.

“The bigger risk is not a specific Treasury yield, but a combination of restrictive policy and weaker growth that undermines cash flows and debt-servicing capacity,”

Lotfi Karoui · said date not stated · reported 2026-09-11

Karoui said the key threat for private credit borrowers is broader economic deterioration rather than any specific Treasury yield.