Private credit stocks entered a local correction as investors reassessed interest-rate and credit risks after stronger-than-expected U.S. inflation data. Blue Owl Capital ended the week at $10.50, down 17% from its August high, while Apollo Global fell 10% to $128.9 and Ares Management dropped to $131.6, its lowest level since August 3. The Invesco Global Listed Private Equity ETF finished at $60, down 7.8% from its August high, while Blackstone, KKR and Golub Capital also declined. August PPI rose 5.4% year over year against a 5.3% forecast, headline CPI rose 3.4% year over year, and core CPI increased 0.3% month over month against a 0.2% forecast. Interest-rate swaps subsequently priced about a 90% chance of a Federal Reserve rate hike next week, up from 69% before the data, while markets fully priced two increases during the year; the CME FedWatch tool, Polymarket and Kalshi showed similar expectations. Private-credit loans generally use floating rates priced as SOFR plus a spread that resets every one to three months, supporting lender revenue when rates rise, but prolonged high rates can pressure borrowers and increase refinancing, amendment and restructuring risks. Oil returning to $100 and higher gasoline and diesel prices, with diesel reaching a record this week, added to inflation and supply concerns. The pressure coincided with substantial redemptions: Morgan Stanley limited withdrawals from its North Haven Private Income Fund, and Apollo curtailed redemptions in June after requests reached 17%. Blue Owl ended the latest quarter with $158.1 billion in assets, down from $159.2 billion, while increasing its focus on private equity and real assets. Lower valuations nevertheless left Blue Owl at a forward price-to-earnings ratio of 11 versus a five-year average of 20, Apollo at 14, and Ares at 22 versus a five-year average of 30.