Just saw some wild data: American life insurance giants are now stuffing over half their fixed-income portfolios into private credit deals. That's a massive shift from liquid bonds to illiquid assets backing policies and annuities.

Think about the implications here. When 50%+ of your holdings can't be easily traded, you're betting big on steady cash flows and hoping no liquidity crunch hits. Private credit offers juicier yields, sure, but it's a one-way door until maturity.

This trend screams desperation for returns in a low-rate environment. The question is: what happens when policyholders need their money and those private loans aren't moving? Traditional finance's liquidity problem might be quietly building up behind the scenes.

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