1) You might have missed it but the EU just published the CMDI package – one of the most consequential pieces of bank regulation. It fixes something that has been really embarrassing about European banking regulation for more than a decade. And the impacts are huge.
3-5 years, that's a ong time.
Meanwhile, Christine is "closely monitoring the situation" :-)
*IRAN ATTACKS DAMAGE 17% OF QATAR LNG CAPACITY FOR 3-5 YRS: RTRS
Responding to the private credit “myths”:
Myth 1: “$40T market, only $2T is leveraged lending”
> Redefining private credit to include all non-public debt to minimize the problem. The risky $2T is what’s breaking.
Myth 2: “More transparent than public credit”
> Transparent to the lender, opaque to everyone else. Academics called it “mark to myth.” DOJ warned about fund-to-fund marks this week. Blue Owl blocked redemptions when marks met reality. BDCs trading 20% below stated NAV.
Myth 3: “It’s tradable - $6B traded YTD”
> $6B out of how much total? If it’s liquid, why did Blue Owl block redemptions and force a merger at 20% discount? Why are BDCs trading 20% below marks?
Myth 4: “Reduces systemic risk”
> Banks lend to funds via sub lines. Funds package into CLOs. Insurers buy CLOs. Banks hold SRT from insurers. Life insurers hold $2.5T illiquid at 20-year low capital buffers.
A French MP proposed a law transferring social housing to their tenants for free after 20 years. Can you guess his political party (using simplified descriptions of those parties!)?
A storybook ending to a lifelong pursuit.
Rory McIlroy is the 2025 Masters champion and one of six players to ever capture the career Grand Slam. #themasters