—— Goldman Sachs Launches $21 Billion Credit Fund; U.S. Homeownership Costs Surpass Renting; Hundreds of Thousands Face Mortgage Payment Spikes; BlackRock Bitcoin ETF Takes the Crown; Foreign Firms Dominate U.S. IPO Market; Didi Widens Q1 Loss; Shanghai and Shenzhen Lower Down Payment Requirements
1. Goldman Sachs Launches $21 Billion Credit Fund
Goldman Sachs has launched a new private direct lending fund, tapping into one of Wall Street’s hottest investment trends.
The fund totals $21 billion including fundraising, co-investments, and leverage, and will focus on senior secured loans. Marc Nachmann, the executive leading the effort, traveled globally to meet with investors—including pension funds, insurers, and sovereign wealth funds.
Nachmann noted that a decade ago, few institutions would allocate capital to private credit, but now interest is surging.
Goldman is committing $500 million of its own capital to demonstrate conviction to investors.
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2. U.S. Homeownership Costs Surpass Renting
A new survey from the New York Fed shows renters believe their lifetime chance of owning a home is just 40%—a 10-year low. Last year, only 16% of homes on the market were considered affordable.
Alongside the median home price of $433,558, costs such as insurance and property taxes have also risen significantly.
Redfin’s chief economist Daryl Fairweather said that owning a home was once a middle-class dream, but many now feel it’s not worth the financial strain.
Data shows homeowners’ total costs now consume a far higher share of income compared to renters.
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3. Hundreds of Thousands Face Mortgage Payment Spikes
Since 2019, over 1.7 million U.S. homebuyers have used adjustable-rate mortgages (ARMs), often with loan sizes averaging $1 million and initial rates lower than fixed-rate loans—but subject to annual adjustments.
About 330,000 borrowers will see their rate locks expire soon, facing sharp increases. Another 100,000 will experience similar jumps over the next 12 months.
California-based Thrive Loans noted that while most borrowers can still manage the higher payments, the financial stress is real.
Most U.S. mortgages remain fixed-rate, insulating many homeowners from rate hikes—but not all.
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4. BlackRock Bitcoin ETF Takes the Crown
As of this Tuesday, BlackRock’s iShares Bitcoin ETF held $19.68 billion in assets, surpassing Grayscale’s long-time leader and becoming the world’s largest bitcoin fund. Fidelity’s Bitcoin ETF ranks third.
Since nine U.S.-based bitcoin ETFs launched on January 11, access to crypto investing has expanded rapidly. In March, bitcoin prices hit a record high of $73,798.
BlackRock’s ETF has gained momentum partly due to lower fees compared to Grayscale.
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5. Foreign Firms Dominate U.S. IPO Market
According to Bloomberg, foreign companies account for 39% of the $17.2 billion raised in U.S. IPOs this year.
This week, Waystar Holding is expected to raise up to $1.04 billion in its IPO. Other major listings this year—such as Viking Holdings, Amer Sports, and Kaspi.KZ—were all from outside the U.S.
Many companies choose the U.S. over domestic markets for IPOs due to higher valuations.
U.S. stocks trade at an average P/E ratio of 20.6, compared to 12.8 in Europe and 12.6 in Asia-Pacific.
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6. Didi Widens Q1 Loss
In Q1, Chinese ride-hailing firm Didi reported a 15% revenue increase but a net loss of ¥1.35 billion, reversing profits from the previous two quarters. Last year’s Q1 loss was ¥1.16 billion.
Driver operating costs and promotional incentives weighed on profitability. Didi also booked an ¥1.8 billion loss on its investment in EV maker XPeng.
Didi is preparing for a Hong Kong listing as Beijing reopens the door to overseas IPOs.
Didi’s U.S. shares are up 17% year-to-date to $4.61.
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7. Shanghai and Shenzhen Lower Down Payment Requirements
Reports on Tuesday revealed that Shanghai and Shenzhen have reduced minimum mortgage down payments to 20% for first-time homebuyers and 30% for second-time buyers. Minimum interest rates have also been lowered.
According to local PBOC branches, Shenzhen first-time buyers may qualify for down payments as low as 15%.
Earlier this month, the PBOC allocated ¥300 billion in loans to local governments to help purchase unsold housing stock.
On Tuesday, China’s property developer index rose as much as 2.4%, with Shimao shares surging 16%.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.