Comment by hollerith
6 hours ago
That is interesting because bubble debt is a lot more hazardous and more likely to cause a recession than bubble equity is, hence all the rules on lenders around Capital Adequacy, Liquidity, and Risk Management/Supervision for which no analog exists for equity investors.
Do those rules apply to private credit and sovereign wealth?
Probably not. They might apply only to banks or even only to banks subject to EU or Anglosphere jurisidiction.