While many big pensions and endowments are expected to have sufficient cash flows to meet these capital calls, the fear is that a large number of other investors will have to offload liquid assets to meet the obligations. That would likely mean even deeper losses in public markets for equities and debt, where returns are already down more than 20% this year.
The private market is coming to collect – and it threatens to wreak havoc across global stocks and bonds.
As financial conditions tighten around the world, private-market funds are demanding that investors stump up more of the cash they pledged during the easy-money days of the pandemic.
