BoE's Andrew Bailey warns Iran war could trigger 2008 crisis
The Bank of England's Andrew Bailey is sounding the alarm: the Iran war could spark a financial crisis on par with 2008.
He's especially worried about the $3 trillion private credit market, which includes lenders such as hedge funds and private equity firms with little oversight, making the market risky and hard to track.
Bailey urges private credit transparency
Bailey says we need more transparency in this sector, since it often lends to companies already deep in debt.
Recent collapses like Tricolor Auto and First Brands, both tied to shady financing, have shaken investor confidence, and investors sought to pull more than $20 billion from private market funds in the first quarter.
On top of that, disruptions in the Strait of Hormuz are pushing up oil prices and borrowing costs, making defaults even more likely.