The Canary in the $1.8 Trillion Coal Mine
By Prof. Jeffrey Bierman, CMT
Hey trader,
You know that saying, "Never put all your eggs in one basket?"
Private credit firm Blue Owl is learning why.
Responsible for managing $1.6 billion in debt into private enterprises, they funded data centers, AI startups, you name it.
They were exactly the kind of firm that thrived when money was cheap and narratives were running hot.
Unfortunately for them, reality arrived.
Blue Owl is down nearly 60% from its highs. Executives wrote off $600 million in losses already. Yet, $1 billion is still exposed on their books.
I know what you are thinking. Blue Owl is a drop in the ocean. One firm in a $1.8 trillion private credit market barely registers.
That logic is the reason this is dangerous.
There are thousands of Blue Owls out there. This is just the first one prominent enough to be exposed.
Garrett Baldwin, Blake Young, and I have all been watching this carefully. Something is not right here.
Twenty years ago, the canary in the coal mine was the housing market. This time, it is the private credit market. And the canary is already on the floor.
And today, I'm going to show you exactly why Blue Owl matters for every position you currently hold.
Genesis COG has closed 83% Winners since July.
When no one wanted oil and energy stocks, I loaded the boat, snapping up SLB and DVN for a roughly 30% gain in each.
Right now, I've got almost 50% cash, with some bearish bets that will pay off nicely WHEN the market collapses.
Genesis COG is more than trades. It's a way to analyze the market through the eyes of the algos that run everything.
In my latest video, I break it all down. Click Here to watch.
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