Citi's Andy Sieg Still Recommends Private Credit Despite Market Volatility

Andy Sieg, who heads Citi’s wealth management unit, said on CNBC’s Halftime Report that the bank still recommends private credit to clients even as withdrawal requests at non-traded private credit funds run above their usual 5% quarterly caps. Those funds, business development companies, hold multiyear loans while allowing periodic withdrawals, so some clients cannot cash out fully. Preliminary Valuation Research data showed requests at 11 of the 14 largest non-traded BDCs averaged 13.0% in the third quarter, down from 13.9% in the second but still well above the cap. Many listed BDCs traded 10% to 20% below reported holdings value, and an October IMF blog said private credit could amplify market stress.