Banks’ soaring exposure to trading firms creating ‘inherent fragility’, warns S&P
Large investment banks have become increasingly reliant on markets financing, report says
Large investment banks have become increasingly reliant on markets financing, report says

Warning that banks may find it difficult to manage risks comes a day after HSBC disclosed $400mn hit

Private credit groups, hedge funds and other institutions account for more than half of global financial assets

Investors fret over growing strains in private credit and risks of AI disrupting the software industry

Growth raises concerns about underwriting and risk management at fast-expanding groups

First-quarter results come amid growing concerns around the links between traditional lenders and the private credit boom

Moves to allow higher leverage and overhaul stress tests have driven increase in market capitalisation