Navigating Private Credit and Banking Risks

This chapter examines the complexities of repurchase agreements and their impact on the private credit sector, particularly in light of recent banking events like the Silicon Valley Bank collapse. It discusses the evolving relationship between banks and alternative investment funds, highlighting the risks of increased leverage and the potential transformation of banks into synthetic financial institutions. Additionally, the chapter addresses the role of the Federal Reserve during financial crises and the need for a better regulatory framework to support the growing private credit market.