Across the world, investors are capitulating on their rate-cut bets
While long-term yields are rising again, they have space to go further.
Bit by bit, across the developed world, investors are giving up their hopes that central banks will cut policy rates this year.
Regulators are beginning to notice what’s going on in private credit — not before time.
At its last meeting, the FOMC played down the systemic risk. Still, the minutes noted the “growing connections between private credit and the banking sector, the growth of some forms of private credit, and the fact that the private credit market has yet to experience a severe credit downturn.”
In the market, the fact that the Fed felt moved to comment at all was taken as very significant.
John Authers Bloomberg 30 maj 2024 at 06:22 CEST
The private credit market $1.5 trillion
https://englundmacro.blogspot.com/2023/05/the-private-credit-market-15-trillion.html
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