Possible scenario
Regulators Expand Review
18% Chance
The New York Fed's earlier inquiry could broaden after Volta's expensive financing demonstrates that risk is migrating from banks to asset managers. Supervisors are likely to focus on underwriting assumptions, concentration limits, warehouse exposure, and ties between banks and private credit funds.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
Secondary impacts
- Technology -0.8%
- Finance -0.8%
- Utilities -0.2%
Tickers
Portfolio impact
S&P 500-0.5%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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