{"content":"THE PRIVATE CREDIT APOCALYPSE HAS BEGUN A $1B bond “fraud” isn’t a footnote … it’s the first crack in a $1.7T shadow banking empire that holds the real leverage of modern capitalism. EquipmentShare borrowed $1B through Goldman, Wells, Citi, JPMorgan, and Capital One. Private. Unregistered. No public record of who owns the debt. Now, amid lawsuits over alleged fraud and misuse of funds … the bonds cratered. Only the banks know who’s bleeding. This isn’t an isolated event. It’s a mirror of 2007 … just rewritten in private credit form. Then: mortgage CDOs. Now: private bonds quietly warehoused across pension funds, hedge funds, insurers. Same opacity. Same complacency. Same contagion risk. The private credit market ballooned 6× since 2010, feeding on zero-rate distortion. Now it’s bigger than U.S. junk bonds … and completely unregulated. No SEC filings. No liquidity. No mark-to-market. A trillion dollars priced on hope, collateralized by trust. When trust fails, the math collapses. If even 1% of this market defaults, it’s a $17B shockwave … equivalent to 15 regional bank failures. If 5% fails, contagion reaches pensions and sovereign wealth funds. The domino chain runs through the same giants underwriting it. Bloomberg called it “isolated.” It isn’t. It’s the quiet unwind of the post-QE illusion … the moment shadow finance becomes visible in daylight. Every crisis begins as “an isolated event.” The difference this time is that the isolation is the system itself. ","images":["https://d35imkjvkj28kt.cloudfront.net/uploadfile/article/blog/2025102025/10/26/9b035a33565e49e4ba23c72ea78de89d.png"],"tags":[],"tradingPairs":[],"quotearticleid":0}