Sanjay Malhotra listed global debt, stretched valuations, leverage, private credit and AI-driven cyber risk, and warned against complacency.
Financial Regulation
40 storiesThe Independent Community Bankers of America has asked a federal court to undo national trust charters granted to crypto firms.
The trade group says the regulator exceeded its authority in granting charters that let crypto firms custody assets nationwide.
The firm kept quarterly tender caps on two private credit funds while saying redemption pressure has eased from earlier in the year.
Withdrawal requests at two Blue Owl vehicles ran well above the 5 percent cap even as its flagship fund reported slowing outflows.
The Federal Reserve Board approved final rules that make its annual stress test more transparent and cut the volatility of the capital requirements it produces, over the objection of Governor Michael Barr.
Redemption freezes and write-downs in Australia's private credit market have drawn global attention and central bank warnings, in the same week the SEC made it easier for retail investors to buy the asset class.
The Board approved changes it says will make the test more transparent and cut the volatility of the capital requirements it produces.
Metrics Credit Partners stopped investors accessing some funds as the prudential regulator warned of heightened risk.
An Australian manager froze investor withdrawals after a write-down, on the same day US regulators reminded funds and auditors how private assets should be valued.
Minerva Investment Management plans to launch this month, betting that opaque loan books are hiding stress.
Metrics Credit Partners suspended three listed funds after a delayed KPMG audit cut asset values.
A $300 billion sector is launching an industry body amid heightened scrutiny, even as fund managers report that redemption pressure is easing.
Retail investors are pulling less money out of non-traded private credit funds and performance has improved, though withdrawal limits and weak inflows persist.
Two rulemaking packages would require full backing in high-liquidity assets and set a capital floor for issuers the Board supervises.
Senior leaders have reopened talks about combining with a foreign bank after Swiss lawmakers backed rules that would bind billions of dollars against the bank's overseas units.
The Board opened comment on two GENIUS Act proposals requiring full backing in permissible liquid assets and setting capital charges for the issuers it supervises.
Apollo's flagship private credit fund faced another rush for exits in the same week EU supervisors named the asset class a key vulnerability.
Investors asked to withdraw 14.7 per cent of outstanding shares in the third-quarter tender, down from the previous quarter but still far above the fund's cap.
ASIC stopped offers under three private credit products and told the sector to fix governance and valuations or face enforcement.
An independent review commissioned by Michelle Bowman blames a risk-averse supervisory culture, and is being used to frame a rewrite of US bank stress tests.
Roughly 11% of a nearly US$7 billion fund was put up for redemption, and the manager is holding to its standard 5% quarterly limit.
The Fed's supervision chief says the board will consider final revisions to its stress-test rules in the coming weeks.
Redemption requests at the bank's flagship private credit fund stayed elevated in the third-quarter repurchase offer.
An outside report commissioned by the Fed's own supervision chief blames examiners rather than the rulebook.
Michelle Bowman says an independent report found examiners knew of the bank's risks well before it failed, and that social media was not the cause of the run.
Fitch raised its private credit default rate to a record 6.3%, and the industry cannot agree on whether the true number is closer to 1% or 19%.
Estimates for the same asset class range from about 1% to 19%, depending entirely on who is doing the counting.
Fitch's trailing-twelve-month measure reached a high just as European and US supervisors began asking who is holding the risk.
Fitch put the trailing twelve-month default rate at a record level just as regulators, senators and litigators turned their attention to the asset class.
The Bank for International Settlements used its quarterly review to warn that AI-driven market momentum is showing signs of vulnerability, and that leveraged non-banks are now central to global markets.
Fitch says the US private credit default rate rose to a new high in August, on the same day two senators pressed regulators for more disclosure on the asset class.
Fitch's default reading and a stalled rally in listed managers sit alongside the first sign that withdrawal demands from the largest non-traded fund are slowing.
A Washington nonprofit has sued the Federal Reserve and its vice chair for supervision over private contacts with Wall Street banks during an open comment process.
Direct lending is being tested from two sides at once, with input costs rising for leveraged borrowers and the benchmark yield they refinance against moving higher.
The securities regulator has told banks informally that humanoid-robot companies must show recurring revenue and a path to narrower losses before an IPO is approved.
Jack Dorsey's payments company joins an OCC queue in which digital asset filings now make up more than half the applications.
The stability watchdog's warning lands while a large retail fund is still limiting withdrawals and traded credit vehicles trade at widening discounts.
The failure of an Australian builder has put banks, regulators and private credit funds on the same set of loans, and shown how little of it is visible.
An Australian builder's failure and a near-zero markdown on a US retail fund loan are testing an asset class that grew through a decade without a default cycle.