All posts tagged: credit

Japan sees private credit as a policy pillar despite overseas market turmoil

Japan sees private credit as a policy pillar despite overseas market turmoil

Published by Sam Flores

TOKYO, April 16 : Japan’s financial regulator sees private credit as a potential key pillar of its new strategy to meet rising corporate funding demand driven by a surge in M&A activity, a senior official told Reuters, despite turbulence in overseas private credit markets. The move reflects a shift in Japanese corporate behaviour, with rising inflation prompting firms to invest cash piles they have been sitting on for long, a trend analysts say could accelerate as Prime Minister Sanae Takaichi prioritises investment-led growth. In contrast with overseas private credit markets that are taking heavy redemption hits, Japan’s market “remains underdeveloped and needs cultivation,” Michinori Haba, the Financial Services Agency’s deputy director-general in charge of financial markets, said in an interview. Haba said funding demand has strengthened further as the Takaichi administration promotes investment alongside rising M&A activity, accelerating government debate over the need to diversify providers of capital. “Under the government’s new financial strategy, domestic private credit could form one of the key pillars,” he said, adding that the policy is premised on close monitoring …

Parents could see ,500 boost to tax credit under new Democratic bill

Parents could see $5,500 boost to tax credit under new Democratic bill

Published by Sam Flores

State Sen. Kristen McDonald Rivet addresses supporters of her campaign for Congress during a primary election night watch party in Saginaw, Michigan, on Aug. 6, 2024. Andrew Roth | AP Rep. Kristen McDonald Rivet, D-Mich., said Wednesday she will introduce a new bill to expand the earned income tax credit to provide a credit of up to $5,500 per child to parents of young children. The bill, shared exclusively with CNBC, is dubbed the “Working Parents Tax Relief Act” and would provide qualifying single or joint filers claiming the EITC an additional credit of up to $5,500 for up to three children under the age of four. The bill would also increase the maximum qualifying income to claim the EITC to nearly $100,000 annually if the filer has children under the age of four, and it would require the Treasury Department to create a monthly payment system for the enhancement. It comes as Democrats campaign across the country on a message of affordability, arguing that Republicans and President Donald Trump have failed to lower costs …

Do credit card gambling bans reduce harm or shift behavior? Experts say there’s always a loophole

Do credit card gambling bans reduce harm or shift behavior? Experts say there’s always a loophole

Published by skeptic

As more states move to block credit cards from gambling, the policy sounds straightforward. Cut off borrowed money, reduce harm. In practice, the results are mixed. The rules change how people pay, but they don’t always change why they gamble or how they manage their money. Ashley Morgan, a debt and bankruptcy attorney in Virginia, sees the gaps up close. She questions whether limiting a single payment option can do much when people can shift funds in minutes. “Not being able to use credit cards on gambling apps may help reduce credit card debt for a few people,” she told ReadWrite, “but many people will just use their credit cards for their other expenses.” In everyday life, that can mean using a debit card to place bets while quietly leaning on credit for rent, groceries, or utilities. Not being able to use credit cards on gambling apps may help reduce credit card debt for a few people, but many people will just use their credit cards for their other expenses. Once the debt is in …

Consumer Credit Grows Less Than Expected On Subdued Credit Card Usage

Consumer Credit Grows Less Than Expected On Subdued Credit Card Usage

Published by Jenni Sidey

While the monthly jobs report has become a veritable economic random number generator, with every monthly print coming either well below or above the forecast stack, the weekly initial claims report has become its foil – a study in boring reporting, with numbers barely budging week to week, and usually falling right on top of Wall Street estimates. A similar dynamic is emerging for the monthly consumer credit report: following a volatile 2025, when revolving credit swung around wildly in unexpected ways dragging the broader print with it, the last few months have been surprisingly steady, printing right around the consensus expectations with barely any volatility. The latest, February, report published minutes ago by the Fed was no surprise: with expectations for a modest increase from last month’s $8.05 billion to $10.25 billion, the reported number was just shy of the estimate, printing $9.484 billion, up from a downward revised $7.665 billion. Revolving credit rose a modest $709 million – the weakest monthly increase since November – to $1.328 trillion, the highest since November 2024.  …

Miami nightclub mogul takes credit for Bad Bunny and Drake friendship

Miami nightclub mogul takes credit for Bad Bunny and Drake friendship

Published by Daniella Wilson

Get the inside track from Roisin O’Connor with our free weekly music newsletter Now Hear This Get our free music newsletter Now Hear This Get our free music newsletter Now Hear This David Grutman, a nightlife legend who owns high-profile restaurants and clubs across America, is taking credit for introducing Bad Bunny and Drake. The 51-year-old Miami staple who owns LIV clubs and the Komodo restaurants opened up about his path from bartending to becoming a successful entrepreneur in his new self-help book Take It Personal: How to Succeed by Building Relationships and Playing the Long Game — and revealed how making one star-studded connection changed the trajectory of his career. In a sneak peek of the book obtained by USA Today, Grutman revealed that he came to co-own a steakhouse, Gekko, with Bad Bunny due to a domino effect that started when he brought the Puerto Rican rapper into Drake’s orbit. Grutman said he realized Bad Bunny’s potential shortly after hearing his music. He then felt even stronger about the rapper’s future after the …

“Unprecedented” Withdrawal Requests Now Hitting Private Credit

“Unprecedented” Withdrawal Requests Now Hitting Private Credit

Published by Jenni Sidey

Submitted by QTR’s Fringe Finance Late last week it was reported that one private credit company has effectively frozen up under a wave of redemption requests, an abrupt liquidity crunch that will likely do lasting damage to what little credibility it still had with investors. This is exactly the kind of stress event I’ve been expecting ever since I flagged that psychology in the private credit space was starting to break—and I still believe conditions in private credit will get worse before they get better. I’ve been flagging the sector as one of ten that I see as an avoid at all costs, and just days ago I wrote that conditions were worse than they appeared on the surface. This latest development only reinforces that view. According to reporting from Bloomberg, Blue Owl Capital Inc. is now limiting redemptions from two of its flagship private credit funds after facing an unprecedented surge in withdrawal requests in the $1.8 trillion market. Blue Owl shares are down about -40% so far this year. Investors in the $36 billion Blue Owl Credit Income Corp. asked …

Cash Is King, Dowd Sees ,000 Gold As The Credit Market “Is Starting To End The Party”

Cash Is King, Dowd Sees $10,000 Gold As The Credit Market “Is Starting To End The Party”

Published by Jenni Sidey

Via Greg Hunter’s USAWatchdog.com, Wall Street money manager and financial analyst Ed Dowd of PhinanceTechnologies.com warned at the end of January that the “Credit Destruction Cycle” was showing up in something called private credit.  Dowd was worried about extreme risk in the economy, especially with all the growth in lending in the last two years coming from private credit.  Has this gotten better or worse?  Dowd says, “It’s gotten worse, and it has spread…” “The number if credit funds that have gated their investors keeps growing.  This is important because high net worth individuals, insurance companies and pension funds put millions of dollars in these private credit funds and now they want to redeem them, and there is a gate.  The last two years of loan growth in the economy was from banks loaning to private credit. . .. There have been earth shaking events in private credit land.  That started a cascading effect of people becoming worried about their private credit fund.  Then, redemptions started, and some funds like Blue Owl have taken massive hits.  They had to gate …

Iran war risks private credit crisis and AI bubble bursting, Bank of England warns – POLITICO

Iran war risks private credit crisis and AI bubble bursting, Bank of England warns – POLITICO

Published by Sam Flores

“A tightening of supply could also affect relatively more resilient borrowers reliant on private-market finance, including UK corporates, especially as UK private markets are heavily dependent on overseas investors,” it said. Market participants should, it added, have a “clear understanding of their direct and indirect exposures to risky credit markets.”  At the same time, fears that the record-high prices of AI-focused stocks could collapse and send ripples through the financial system have persisted, with the FPC highlighting that valuations for U.S. tech firms focused on AI remain “particularly stretched.” “Despite the volatility that the conflict has generated, risk premia in global equity and debt markets remain compressed by historical standards, heightening the risk of a sharp correction if macroeconomic conditions worsen,” said the committee. “AI-related repricing could transmit widely throughout the financial system and impact the real economy.” Finally, the FPC warned that existing sovereign debt vulnerabilities could be worsened by the conflict, as “a relatively high use of leverage by a small number of hedge funds pursuing similar strategies” risked causing stress on the …

BetMGM phases out credit cards after fraud probe in Pennsylvania state

BetMGM phases out credit cards after fraud probe in Pennsylvania state

Published by skeptic

Regulators in Pennsylvania have signed off on a settlement with BetMGM after uncovering a series of fraud-related failures tied to how the company verified its customers. The agreement, approved March 25, comes with financial penalties and the removal of credit cards from the BetMGM platform starting March 31. The decision follows a detailed review of multiple cases where fraudulent users were able to open accounts, move money, and withdraw funds using stolen or fabricated identities. State officials said those incidents exposed gaps in the company’s safeguards, particularly around its Know Your Customer processes. Fraud cases and regulatory findings Investigators described a pattern of control failures that stretched across multiple years. According to Senior Enforcement Counsel John Crohe, the case involved “four incidents of interactive gaming know your customer requirement violations” that allowed fraudulent behavior to persist. One scheme stood out because of its scale and duration. Crohe said that between late 2021 and early 2024, “a fraud ring created 1,567 accounts on the BetMGM interactive gaming platform.” From there, the operation expanded quickly. Of those …

Subprime Crisis 2.0: Will Private Credit Be The Trigger?

Subprime Crisis 2.0: Will Private Credit Be The Trigger?

Published by Jenni Sidey

Via RealInvestmentAdvice.com, We have recently tackled the rising stress in the Private Credit markets. Here are a few of our previous warnings: After 30 years of watching credit cycles expand, distort, and collapse, I’ve learned one reliable rule: “When enough people start drawing comparisons to 2008, it’s worth stopping to check whether the analogy holds up — or whether fear is doing the analytical work for them.” Right now, judging by the amount of commentary on social media, the stress in the private credit market has everyone’s attention. Most of the commentary being generated makes the immediate jump from private credit firms “gating” exits to the onset of the next subprime crisis in the financial system. Those claims are certainly alarming and generate many clicks and views, but the question is whether those claims are based on facts rather than opinions. Just recently, Goldman Sachs CEO David Solomon flagged the risk of private credit in his annual shareholder letter. Lloyd Blankfein, who piloted Goldman through the Global Financial Crisis, warned publicly that the financial system appears to …