Laura Noonan 2.5 1 idea

Regulators are concerned about "unseen ties between private credit and banks" ($2.2 Trillion in lending commitments). However, there is a "move towards deregulation." The sector is growing rapidly and deregulation fuels it further, but the opacity creates "tail risk." If regulators cannot see the leverage, a shock could be systemic. WATCH. The deregulation trend is bullish for profitability in the short term, but the systemic risk is rising. A credit event revealing hidden leverage that triggers a regulatory overreaction.