So much of credit securitisation still relies on magical thinking
Rather than financial alchemy, such deals involve mispricing, reduced capital buffers and hidden risks
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Small steps towards an alternative reality
Our imagination can shape the way we see the world and then act within it
We must be mindful of the risks of private credit
The sector remains untested in a severe or prolonged economic downturn
There is method in the market’s madness
But it relies on a host of rosy assumptions going in investors’ favour
Bubble-talk is breaking out everywhere
But more optimistic investors continue to bank on the cavalry arriving if things get really dicey
The silver bullet fallacy
The idea that a lot of problems are difficult to fully solve doesn’t mean we should stop trying
Is there magic to be found in our everyday surroundings?
Small wonders offer a vital counterpoint to the things that cause us terror and sorrow