Welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Thursday, March 19. In today's briefing, another direct-lending fund failed to meet investor demand for redemptions, and Nikola's Trevor Milton mounts a comeback.

Private credit’s investor exodus spreads to consumer loans. Stone Ridge Asset Management told clients in the fund last week that recent redemption requests were so high that it would honor only 11% of the amount investors wanted back.

That suggests that investors’ concerns about private credit are broadening. Unlike other private-credit funds that experienced a flight of investors in recent weeks, Stone Ridge’s fund didn’t hold loans to software makers or other corporate sectors that investors fear will be displaced by advances in artificial intelligence.

• Barclays CEO Plays Down Private-Credit Risks

Fed holds rates steady as Iran War clouds outlook. The Federal Reserve held interest rates steady Wednesday and tentatively preserved a path to cutting rates this year as higher energy prices from the Iran war threaten to prolong their yearslong inflation fight.

But at a news conference after the meeting, Fed Chair Jerome Powell said little to suggest cuts were around the corner and instead emphasized how little room officials might have to ease. He described the Fed’s current policy stance as sitting much closer to one that neither spurs nor slows growth, which would make rate reductions much harder to justify unless the economy weakens.

Pardoned for fraud, CEO mounts his comeback. Trevor Milton’s conviction for defrauding investors in truck company Nikola was wiped away. He’s now raising funds for a new jet he claims will transform flying.

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