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OPINION: Losses at biggest European investment banks could herald something bigger

The Tower Bridge structure against a sunset view towards Canary Wharf in the distance. People are strolling on the pedestrian walkway.
Photo: Paulina Tekiela/Getty Images

Parvez Khan discusses whether private credit could cause trouble for the global financial system.

There is a growing acceptance among policymakers that private credit, now a $1.5–2 trillion market, is no longer outside the system. If the biggest European investment banks are indeed among those most exposed to a potential profit shock, the issue is not earnings volatility. Key policymakers increasingly argue it is

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