Loading ...According to ZH insurers are on the hook with 35% of their US assets being pvt credit (I can only read the first three lines of the article). I guess that’s not unexpected, after a couple of disasters like the Californian fires they’ll be chasing (apparent/promised) yield as much as anyone. I wonder if that includes health insurers?
I suspect “private credit” is going to be the same as all the AAA CDSs from 2007. No-one knows who or where all the risk is sitting through much rehypothecation, bundling, reselling etc. As Buffet said, we’ll have to wait for the tide to go out. And the tide always goes out before a tsunami …….
Popcorn, please.