Burning Issues: PE's Dry Powder, Art's Bleak Picture & China Credit Stress

The video discusses the concept of 'dry powder' in private equity, highlighting its potential as both an opportunity and a competitive threat due to high valuations. It then shifts focus to the Asian art market, detailing the disruptions caused by COVID-19, including the cancellation of major events and the impact on Chinese collectors. Finally, it examines the risks of default in Chinese companies, emphasizing the significant amount of stressed debt and the potential need for state intervention.

What is the main challenge in deploying the 'dry powder' in private equity firms?

• Insufficient funds

• Regulatory restrictions

• High valuations

• Lack of investment opportunities

How does the 'dry powder' in private equity pose a threat to traditional banks?

• By reducing loan demands

• By competing in similar markets

• By increasing interest rates

• By causing inflation

What was the impact of the coronavirus on the Art Basel Hong Kong event?

• It was moved to another city

• It was postponed to a later date

• It was held online

• It was canceled

What percentage of the global art market did Asian buyers account for in 2018?

• 30%

• 25%

• 19%

• 10%

What is the estimated amount of stressed China dollar debt mentioned in the transcript?

• $5 billion

• $15 billion

• $9 billion

• $20 billion