0:00
We even had the Bank of England recently
0:02
say they are concerned about the effect
0:04
of the private credit market, but at the
0:06
same time that they don't really know
0:08
enough about it to know how much they
0:10
should be concerned. So, is it that kind
0:11
of opacity that makes this such an an an
0:14
unknown entity? You know, are we in the
0:16
middle of like a slow-motion car crash
0:18
or is everything fine? You're exactly
0:19
right. There are two big passages of
0:22
thought that people are currently coming
0:24
down on. The first, the optimist's case
0:27
that you'll hear people from private
0:28
credit argue, is that each investment
0:31
that private credit makes is unique.
0:33
It's sort of a bit like a honeycomb, I
0:35
had it described to me, that if one
0:37
pops, the little honeycomb is isolated
0:40
and then there are lots of other
0:41
honeycombs that will prove out to be
0:43
good investments. Whereas, what everyone
0:45
who is in the bear case is worried about
0:48
is that there are all these little
0:49
connections to banks, to retail
0:52
investors, to the wider financial
0:54
ecosystem, so that if you get two or
0:57
three or four really, really big
0:58
collapses, then that could spread into
1:00
the wider financial system and
