Zuberi

You thought FTDs on GME are bad?

Go check out XRT ;)

As plenty of the OG SS mods encourage you to yolo your money into short-dated derivatives contracts, try to remember there are only 305M shares to DRS ;)

UBS Chairman Colm Kelleher warned against growing risks in private credit as the market continues to boom.

“There is clearly an asset bubble going on” in the asset class, Kelleher said at the FT Global Banking Summit in London on Tuesday. “What it needs is just one thing to trigger a fiduciary crisis.”

Private credit has become an increasingly sought-after funding tool for buyout firms as banks have pulled back amid a spike in interest rates and a drop in investor risk appetite. Some banks are concerned about this shift as underwriting these types of loans — and then selling them to other investors — is a strong source of revenue for them.

Kelleher is the latest top executive to warn about the rising risks. Pimco executives said earlier this month the market is under-regulated and lacks transparency.

Read More: Pimco Sounds Alarm on Under-Regulated Private Credit Markets

But speaking to Bloomberg TV shortly after Kelleher’s comments, Ares Management Corp.’s co-head of European Credit, Blair Jacobson, dismissed the suggestion.

“There’s no bubble at all in private credit,” he said

. “There’s a lot left to go for in the large-cap side.”

The private credit market has roughly tripled in size since 2015, growing to a $1.6 trillion industry that includes traditional direct lending to smaller companies, buyout financing as well as real estate and infrastructure debt. Last week private credit funds provided a record €4.5 billion ($4.9 billion) loan to back the buyout of Adevinta ASA.

Read More: How Private Credit Gives Banks a Run for Their Money: QuickTake

— With assistance from Silas Brown

For those of you who don't use a Paywall Bypass:

Nov 27 (Reuters) - The U.S. Securities and Exchange Commission on Monday adopted a financial crisis-inspired rule barring traders in asset-backed securities from betting against the same assets they sell to investors.

The SEC move is mandated by the Dodd Frank law, aimed at eradicating behavior seen in the 2008 global financial crisis.

The rule is among the last to be adopted under 2010's Dodd Frank Wall Street reform legislation and faced a winding road to completion. An earlier version on traders' "conflicts of interest" was first proposed in 2011 but never finalized.

The rule blocks "securitization participants" from entering deals that involve shorting or buying credit-default swaps against those same securities. Parties covered by the rule include underwriters, placement agents and sponsors for asset-backed securities.

The rule exempts activities such as hedging risk and market-making.

In a statement, SEC Chair Gary Gensler said the rule applied to a market that "was at the center of the 2008 financial crisis."

In concessions to industry, SEC officials said they had modified the proposal first issued in January to carve out exceptions for affiliates who do not act in concert with traders. Another exception is for investors with "long" positions, as opposed to those who are short, or betting that the securities will decline in value.

Four of the SEC's five members voted to approve the rule. Republican Commissioner Hester Peirce, a frequent critic of the SEC's rulemaking agenda who had approved the January proposal with reservations, voted against it.

Goldman Sachs (GS.N) agreed in 2010 to pay a record $550 million penalty to resolve SEC allegations that it had misled investors. A Senate investigation later revealed how the bank had marketed mortgage-backed securities without disclosing substantial bets that these assets would lose value.

The SEC says it will require compliance with the rule for asset-backed securities with closing dates falling 18 months after the rule appears in the Federal Register.

Reporting by Douglas Gillison; Editing by David Gregorio and Marguerita Choy