Fed Sounds the Alarm Bell on Risky Corporate Debt

The video discusses the Federal Reserve's Financial Stability report, highlighting risks in the leveraged loan market, which has seen record issuance despite recent market jitters. The Fed has previously warned about this asset class, which is heavily influenced by private equity activities. The discussion also covers the Fed's current stance on interest rates and the potential impact of leverage on financial stability, emphasizing the deeper declines that can occur during economic downturns.

What was the Fed's stance on the leveraged loan market in their first Financial Stability report?

What role does private equity play in the leveraged loan market according to the text?