The Liquidity Trap Inside Private Credit
- Sep 15, 2026
- 0:56
- Short
A fund can hold illiquid assets while still promising investors access to their money.
Itay Goldstein, Wharton Professor of Finance, explains why that mismatch can create bank-run-like pressure in semi-liquid private credit funds.
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Brief Summary
The episode covers bank runs, liquidity issues, and the evolution to private credit funds.
Key points
- Understanding Bank Runs. Exploring the classic phenomenon of bank runs and liquidity transformation.
- The Evolution of Financial Institutions. Examining how bank run phenomena have migrated into mutual funds and private credit.
