The Globe and Mail reports in its Wednesday edition that alarm bells are ringing in the $2-trillion private credit industry, with investor concerns about the growing risk of default on private loans to software businesses, which may be disrupted by artificial intelligence and higher interest rates. In a Globe special, Rita Silvan writes that fear of contagion in an increasingly interconnected financial system has some investors heading for the exits, pulling capital from private credit funds from Blue Owl Capital, BlackRock, Blackstone and others. Yet, the broad private credit sector is in better shape than the headline news presents, says Philipp Soummer at Chronicle Wealth in Toronto. "It's important to disambiguate the two key risks in private credit: Liquidity and valuation," Mr. Soummer says. "The second risk is far worse than the first. Right now, I'm not seeing anything regarding a deterioration of valuations or from a default perspective." What he sees is a gap between retail investors' liquidity expectations and the way the funds are structured. Victor Kuntzevitsky at Stonehaven Private Counsel in Aurora, Ont., sees the anxiety in the sector as a sign of a maturing market, not a reason to run for the exits.