Leveraged Lending Isn't Posing Crash Threat, Fed Chairman Says

The video discusses financial risks, focusing on business debt and the strength of the financial system. It highlights concerns about leveraged loans, the unknown holders of such debt, and the implications of increased global debt. Chairman Powell's remarks on debt ratings and the trend of lighter covenants are examined. Despite strong corporate profitability, potential future crises are acknowledged. The issue of liquidity mismatch in mutual funds and long-term debt is also addressed.

What was Chair Powell's main concern regarding leveraged loans?

• The high interest rates on these loans

• The lack of demand for leveraged loans

• Uncertainty about who holds the loans

• The financial system's inability to handle losses

How has global debt changed since the financial crisis?

• It has decreased by half

• It has remained the same

• It has doubled

• It has tripled

What is the average rating of leveraged debt mentioned in the video?

• Double B

• Single B

• Triple A

• Triple C

What financial issue arises from the liquidity mismatch discussed?

• Delayed access to funds

• Immediate access to funds

• Higher default rates

• Increased interest rates

What past financial situation is compared to the current liquidity mismatch?

• The Asian financial crisis

• The 2008 financial crisis

• The dot-com bubble

• The building societies in the UK