UBS warns of “ratings arbitrage” in private credit, a replay of pre-2008 risks. Economists say leverage now holds the system together.
Something about this feels familiar. Not in the details, but in the tone. The warnings are starting to sound like they did before 2008. Quiet. Technical. Polite. But the words are the same. “Insurers shopping for better ratings on their private credit assets are creating a “looming systemic risk” to global finance, the chair of …