Private Credit Hits $1.7T, Banks Quietly Crying in the Corner
Direct lenders keep eating the banks' lunch and now have $1.7T to deploy. Regulators just realized nobody actually knows where the leverage is buried. shadow-banking szn 💀
Private credit has ballooned past $1.7 trillion, which means the asset class formerly known as 'shadow banking' now has a nicer name and a bigger war chest than ever. Direct lenders are writing checks banks used to fight over.
The pitch is simple: floating-rate yield, fewer pesky regulators, and LPs desperate for anything that isn't a 60/40. The risk is also simple: it's all marked at par until, suddenly, it isn't.
Regulators are finally squinting at the leverage hiding inside these funds. Nobody fully knows where the bodies are, which is historically a great sign for financial stability.
Powell Holds Rates, Politely Tells Rate-Cut Bros to Touch Grass
JPow left rates unchanged and basically subtweeted everyone praying for cuts. The dot plot shoved easing deeper into next year — rate-cut dawgs officially down bad. 📉
IPO Window Cracks Open, Bankers Smell Fees Again
Two tech names priced above range and ripped on day one. The new-issue market is officially back from the dead and ECM desks are frantically dusting off the pitch decks. 🪟