Goldman's Himmelberg Says Leveraged Finance Market Is Robust

The video discusses current market volatility influenced by trade deal uncertainties and the Fed's concerns about leveraged lending and increased debt levels. It highlights the evolution of the private debt market, noting changes in covenants and the shift from traditional banking to private sector lending. The discussion also compares today's market conditions to those of the 2007-2008 financial crisis, emphasizing differences in investor behavior and systemic risks.

What is the market's current reaction to the uncertainty surrounding the trade deal?

• The market is reducing the probability of a deal being completed.

• The market is increasing the probability of a deal being completed.

• The market is optimistic about the deal.

• The market is indifferent to the deal.

What is the Fed's concern regarding leveraged lending?

• The growth of private equity.

• The decline in market volatility.

• The increased debt levels among risky credits.

• The stability of the banking system.

How does the growth of the private debt market relate to private equity?

• It grows at a slower rate than private equity.

• It grows at a faster rate than private equity.

• It is unrelated to private equity.

• It mirrors the growth of private equity.

What was a significant issue during the 2007-2008 financial crisis that is less prevalent today?

• High levels of inflation.

• Structured investment vehicles funding long-term assets with short-term borrowing.

• Excessive government intervention.

• Lack of investor interest in private debt.

What is the current state of the private debt market compared to the 2007-2008 crisis?

• It is more volatile and risky.

• It is less robust and more prone to systemic risks.

• It is more robust with long-term investors.

• It is similar in risk to the 2007-2008 crisis.