Hedge funds are the new ‘shadow banks’—and some are worried they pose a systemic threat to financial stability
Economist Paul McCulley coined the term “shadow banking” in 2007, just over a year before Lehman Brothers collapsed. Soon, it became clear easy credit had helped fuel the subprime mortgage meltdown that brought the global financial system to its knees. Nearly two decades later, a bond market sell-off triggered by President Donald Trump’s chaotic tariff … Read more