Retailization of Private Credit: Systemic Risk Implications of Semi-Liquid Vehicles and 401(k) Integration Post-Executive Order 2025

Extends the K-A-T framework to retail distribution channels. Three formal propositions: (i) retail funding constraints amplify procyclically through behavioral contagion and information asymmetry (K_retail); (ii) redemption cascades in semi-liquid vehicles create amplification mechanisms structurally analogous to bank runs but without deposit insurance (A_retail); (iii) absent lender-of-last-resort implies near-zero policy backstop (T_retail ~ 0). Empirical analysis on novel SEC EDGAR XBRL panel of 10 publicly-traded BDCs (138 quarterly observations, 2020-2025), plus event-snapshot data for non-traded vehicles. The March 2026 gate wave (BCRED 7.9%, HLEND 9.3%, Cliffwater 14%) yields Forbes-Rigobon adjusted correlation 0.43 (rejecting no-contagion at 1%), DCC-GARCH persistence beta = 0.967 (half-life 36 trading days), and Diebold-Yilmaz connectedness 68.0% (ARCC dominant net transmitter +12.6pp). Placebo: semi-liquid BDC connectedness 75.6% exceeds daily-liquid ETF 64.5%. Proposes Retail Private Credit Gateway (RPCG) regulatory framework: mandatory liquidity buffers (15-20% NAV), standardized valuation disclosure, ERISA-compliant suitability, FSOC designation authority for systemically important semi-liquid vehicles.

Authors

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-05-09
DOI
https://doi.org/10.5281/zenodo.20095777
Primary Topic
Financial Reporting and XBRL
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Retailization of Private Credit: Systemic Risk Implications of Semi-Liquid Vehicles and 401(k) Integration Post-Executive Order 2025

Luka Stanisljevic
Zenodo (CERN European Organization for Nuclear Research)
Financial Reporting and XBRL
article

Retailization of Private Credit: Systemic Risk Implications of Semi-Liquid Vehicles and 401(k) Integration Post-Executive Order 2025

Luka Stanisljevic
article en

Abstract

Extends the K-A-T framework to retail distribution channels. Three formal propositions: (i) retail funding constraints amplify procyclically through behavioral contagion and information asymmetry (K_retail); (ii) redemption cascades in semi-liquid vehicles create amplification mechanisms structurally analogous to bank runs but without deposit insurance (A_retail); (iii) absent lender-of-last-resort implies near-zero policy backstop (T_retail ~ 0). Empirical analysis on novel SEC EDGAR XBRL panel of 10 publicly-traded BDCs (138 quarterly observations, 2020-2025), plus event-snapshot data for non-traded vehicles. The March 2026 gate wave (BCRED 7.9%, HLEND 9.3%, Cliffwater 14%) yields Forbes-Rigobon adjusted correlation 0.43 (rejecting no-contagion at 1%), DCC-GARCH persistence beta = 0.967 (half-life 36 trading days), and Diebold-Yilmaz connectedness 68.0% (ARCC dominant net transmitter +12.6pp). Placebo: semi-liquid BDC connectedness 75.6% exceeds daily-liquid ETF 64.5%. Proposes Retail Private Credit Gateway (RPCG) regulatory framework: mandatory liquidity buffers (15-20% NAV), standardized valuation disclosure, ERISA-compliant suitability, FSOC designation authority for systemically important semi-liquid vehicles.

Zenodo (CERN European Organization for Nuclear Research)
Partnerships for the goals
Openalex Percentile: Top 4%
Financial Reporting and XBRL
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.