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
OPINION: Losses at biggest European investment banks could herald something bigger
4 min read
Parvez Khan discusses whether private credit could cause trouble for the global financial system.