It remains to be seen what risk triggers Trump 2.0 will bring and what contagion might flow within and between the regulated and NBFI sectors.
Subscribe to gift this article
Gift 5 articles to anyone you choose each month when you subscribe.
Subscribe nowAlready a subscriber?
In finance there is a truism: risk can be shifted between holders, but it can’t be destroyed by doing so.
Low rates and QE after 2008 and the monetisation of COVID-19 created a favourable environment for markets. But Basel III and other regulations had placed leverage constraints on banks.
Fetching latest articles
Original URL: https://www.afr.com/companies/financial-services/why-trump-tariffs-have-upped-the-risk-of-a-private-credit-gfc-20250408-p5lq0l
