Introduces Rebecca Walser to discuss FOMC decision and private credit concerns.
Alex
Rebecca Walser
Market looking for dissenters and Fed minutes; rate cuts facing headwinds due to inflation and Iran war impact.
Market looking for reintroduction of two-sided risk language; asks about private credit concerns.
Alex
Rebecca Walser
Private credit has similarities to 2008 but key differences: no FAS 157 mark-to-market, less exposure; liquidity contagion risk exists through bank credit lines.
Asks if private credit situation comparable to commercial real estate/regional banks post-COVID.
Alex
Rebecca Walser
Yes, comparable to regional bank commercial lending issues; alone wouldn't cause financial contagion without confluence of other factors.
Asks retail investor what to watch to gauge private credit situation.
Alex
Rebecca Walser
Look at overall market, inflation, Fed accommodation; Strait needs to reopen to avoid inflationary crude pressures.