NY Fed probes private credit risk

🚨 FED RUSHES INTO MAJOR BANKS AS PRIVATE CREDIT DEBT BOMB THREATENS FULL MARKET LIQUIDITY COLLAPSE The New York Fed is already inside JPMorgan, Wells Fargo, Barclays, and Morgan Stanley inspecting their loans to private credit firms because those firms are about to get crushed rolling over hundreds of billions in debt at today’s punishing interest rates. Companies that borrowed cheap a few years ago now face refinancing walls where rates are far higher. Their cash flows cannot cover the new payments, so the private credit lenders that own the loans are marking them down and struggling to fund themselves. Banks that lent to those private credit firms are sitting on the collateral. When the Fed starts asking about collateral quality and counterparty exposure, it means the overnight funding desks are already hearing stress. If one large player cannot roll its paper, the banks holding the other side of those trades get hit at the same time. This freezes repo markets, forces fire sales of bonds and loans, and turns a private credit problem into a market-wide liquidity seizure. This is the exact transmission path that turns isolated losses into a systemic funding crisis. This was exactly warned the famous City of London banker @LordBelgrave at the start of year. The rollover wave is here now. The Margin Calls are about to show up.Quoting @LordBelgrave: https://t.co/X1CvDcYYEq