Private‑credit managers are shedding the taboo against loan trading as redemption pressure mounts. Business‑development companies are pruning software‑linked exposure while buying distressed debt, and heavyweights such as Apollo Global Management and KKR have been active in recent weeks. Opportunistic funds like Diameter Capital Partners are also snapping up assets, signaling the industry’s first stress test after years of rapid growth.

Diameter’s co‑founder Scott Goodwin told investors the firm completed 15 trades in the last two months and expects $150 billion to change hands in secondary private‑credit sales this year. JPMorgan Chase disclosed it has already traded $2 billion of loans in 2024, eclipsing its cumulative volume in prior years. Such activity suggests a burgeoning market for secondary transactions that were once rare.

Deal structures now resemble bids‑wanted‑in‑competition, bundling loans and equity stakes to mask weaker credits and temper markdowns. Oaktree’s co‑CEO Armen Panossian warned that secondary sales will reshape portfolios as participants chase liquidity. With banks facilitating matches and BDCs trimming legacy positions, the private‑credit landscape is rapidly redefining pricing and risk management, marking a permanent market shift in market behavior.