Wall Street’s $1.3 Trillion Time Bomb - The Private Credit Bubble

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The global credit market is undergoing a radical transformation—and the warning signs coming from Wall Street’s most influential bond managers are getting louder. In this video, we break down why Pimco’s chief investment officer says relying on “investment-grade” ratings has become “very, very dangerous”, and why Moody’s now believes $300 billion in private credit could pose systemic risk to the U.S. financial system.

Private credit has exploded, reshaping corporate lending as banks retreat and non-bank lenders take over. But behind the record growth lies an ecosystem built on stacked leverage, hidden financials, conflicts of interest, weaker underwriting, and ratings inflation reminiscent of the pre-2008 era.

In this video, you’ll learn:
📌 Why “investment-grade” ratings may no longer mean what they used to
📌 How banks are indirectly exposed to private credit through a dangerous leverage loop
📌 Why regulators like the SEC and BIS are sounding alarms
📌 How rapid loan growth historically predicts rising default risk
📌 What could trigger a private-credit unwind—and how it could spill into the U.S. banking sector
📌 Why Pimco believes investors must return to fundamentals, not labels

#privatecredit #creditcrisis #pimco #moody’s #bankingcrisis #financeexplained #economicrisks #creditmarkets #investing2025 #wallstreet

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