Hunt: Private Credit Reinsurance Structures Recreate Pre-2008 Citigroup SIV Risks
Ben Hunt · Ben Hunt - The Stories that Drive Markets (EP.393) · Jun 24, 2024 · at 43:43
Ben Hunt explains systemic macroeconomic risks and regulatory arbitrage in private credit to Ted Seides.
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“My strong belief is that we've shifted around a lot of risk into the insurance, particularly the offshore reinsurance world, where leverage ratio is incredibly high, increasingly invested with affiliates. And we all know what that means, but it's, the reason I say it reminds me of Citigroup and the SIVs is an effort to take risk off balance sheet, but when the shit hits the fan, that risk comes back on balance sheet.”
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