In this episode of the Odd Lots podcast, the hosts delve into the growing influence of private credit and its connection to traditional banks. They discuss whether transferring risk from bank balance sheets to private credit firms genuinely reduces systemic risk, especially given the increasing leverage and interconnectedness of these entities. The conversation covers how private credit investments work, the evolving structures of private credit funds—particularly the trend towards greater liquidity—and the regulatory responses to this expanding sector. Additionally, they explore the role of insurance companies in providing long-term funding and consider the potential for future regulatory changes.
