Shifting Risk Dynamics
The conversation delves into the evolving landscape of private credit and the significant shift in risk associated with the funding models used by asset managers. By relying increasingly on insurance premiums through affiliated entities, these firms mirror past financial practices that obscured risk. The discussion highlights the potential dangers of this regulatory arbitrage, drawing parallels to the pre-crisis era of 2007-2008, where risks were moved off balance sheets but ultimately returned when crises struck.In this clip
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