Citi’s Bhatia Warns of Private Credit ‘Tourists’ Forced to Sell

Private credit rookies selling into a downturn poses a potential threat to corporate debt, Citigroup Inc.’s Mickey Bhatia warned.

“If the cycle turns and these tourists, rather than working out loans, just start selling them at below the economic value — what happens to the rest of the market?” Bhatia, the firm’s head of spread products, asked on the Bloomberg Intelligence Credit Edge podcast.