Economic Impact and Labor Market - The expectation is that the current situation will last a few days, but the focus is on the labor market due to potential furloughs affecting around 900,000 federal workers and delays in pay for all federal employees [2][3] - The Trump administration is considering making some furloughs permanent, which could create a shock in the job market, and the Federal Reserve is closely monitoring the labor market as it considers future policy [2][3] Market Reactions and Valuations - Past government shutdowns have had limited effects on bonds and stocks, but current equity valuations are stretched, with a P/E ratio around 22 times, which is above average [3][4][5] - Historical data suggests that investing in the S&P 500 at such a high forward P/E multiple has resulted in muted returns over the next ten years, raising concerns about investor patience during the shutdown [5][6] Credit Market Dynamics - There is increasing demand for alternatives in credit, with a notable rise in private credit funds and interest from private equity sponsors and borrowers [7][9] - Concerns have been raised about the quality of underwriting and covenants in the private credit market, with a degradation noted, while public markets are also seeing significant demand, evidenced by $60 billion in high-yield bond issuance this month [10][11] Consumer Spending Trends - Current data indicates a bifurcation in consumer spending, with higher-income consumers maintaining spending levels while lower-income consumers may already be experiencing recessionary conditions [13][14] - Weak data for travel and hotel occupancy in August suggests that higher-end consumers are becoming more cautious amid market uncertainties [14]

📊 BIG: Onchain tokenized RWAs have hit $32B.Private credit leads with 53% share. https://t.co/3Mz0Apk5H6 ...

Private credit could be a “meaningful” transmission channel during the next crisis, amplifying a systemic shock to the financial system with negative repercussions for a broad range of investors, according to Fitch Ratings https://t.co/cdSn9JdjeD ...

RT Securitize (@Securitize)The Securitize Tokenized Apollo Diversified Credit Fund ACRED on @SeiNetwork is now live on @RWA_xyz.Private credit on Sei is going global, with $15M launched on day one.Multichain via @wormhole, with daily NAV by @redstone_defi https://t.co/1xEiiYTl5g ...

RT Jay ($/acc) (@jayendra_jog)Awesome to see Apollo's $1.2B ACRED Fund on Sei!Private credit is the fastest growing sector in finance and the area where Wall Street has the most to gain from being onchain.Excited for the future of this with @Securitize and @carlosdomingo!RWAs Move Faster on Sei. ($/acc) ...

RT Sei (@SeiNetwork)Private credit is a $2T asset class uniquely suited to benefit from tokenization.Made up of corporate loans, real estate debt, and even consumer credit, it’s attractive because returns are uncorrelated to public markets and offer meaningful premiums.Yet historically, it’s one of the most opaque, illiquid markets.Tokenization transforms private credit into a robust onchain asset class — with clear demand — already representing 57% of the total RWA market value.Private credit is an importa ...

Private credit is a $6T market still stuck in spreadsheets.On-chain rails could unlock it, says @MorganKrupetsky.CoinDesk Indices (@CoinDeskMarkets):“On-chain infrastructure can ultimately help to democratize access to a market that has historically been closed off to all but the largest institutions” says @MorganKrupetsky of @AvaLabshttps://t.co/b3eYx5jzaM ...

Core Insights - Percent has launched Separately Managed Accounts (SMAs) focused on private credit investments, targeting asset-backed loans valued under $25 million, with expected risk-adjusted returns between low double digits and mid-teens [2][4] - The SMAs will charge an annualized management fee of approximately 1% and an additional fee of 10% of the coupon rate for included deals, with plans to lower the minimum net worth requirement for investors [3][4] - The private wealth channel has shown increasing interest in private credit investments due to higher-than-average yields in a rising interest rate environment, although recent market volatility has raised concerns about potential defaults [4] Company Strategy - Percent's platform aims to raise funds from retail investors, family offices, Registered Investment Advisors (RIAs), and credit funds for non-bank lenders, focusing on small business, consumer, and litigation loans [4][6] - The company has been providing customizable products known as "blended notes" and has transitioned these into the SMA program since early September [5] - Percent's CEO highlighted the opportunity for investors to gain additional diversification through under $25 million transactions, which can offer better returns with comparable risk levels [6]

Summary of National Bank of Canada FY Conference Call Company Overview - **Company**: National Bank of Canada (OTCPK:NBCD.F) - **Subsidiary**: Credigy, a specialty finance subsidiary headquartered in Atlanta, Georgia, with over $8 billion in assets [2][4] Core Business Strategy - **Integration**: Credigy has been a fully consolidated subsidiary of National Bank of Canada since 2006, emphasizing its integral role within the bank [4] - **Focus**: The company provides capital to acquire or finance financial assets primarily in the U.S., targeting high credit quality consumers and low loan-to-value (LTV) mortgages [4][7] Competitive Advantages - **Team Experience**: Credigy boasts a tenured team of about 185 employees, with an executive team averaging 19 years together [6] - **Execution Over Price**: The company competes on execution and flexibility rather than price, differentiating itself from larger banks and new entrants in the private credit space [6] Market Outlook - **Mortgage Investments**: There has been significant momentum in Q2 and Q3, with expectations for continued growth. A declining interest rate environment is viewed as a potential tailwind [6][7] - **Insurance-Related Segment**: Opportunities exist in consumer-facing products with underlying credit exposure to high-quality insurance companies, providing diversification [9] Customer Interaction - **B2B Model**: Credigy operates purely on a business-to-business basis, building relationships with asset originators and intermediaries rather than directly with consumers [10] Growth Strategy - **Organic Growth**: The company prefers to grow by partnering with other companies rather than through acquisitions, maintaining a lean and flexible structure [11] - **Asset Class Expansion**: Credigy is open to exploring new asset classes but maintains a high bar for entry based on performance data and operational risk [12] Financial Performance - **Balance Sheet Evolution**: The distribution of assets has changed significantly over the past five to ten years, indicating responsiveness to market value [13] - **Growth Target**: Credigy aims for a long-term growth rate of 5% to 10% per year, adjusting based on market conditions [30] Regulatory Environment - **Oversight**: Credigy is overseen by the Office of the Superintendent of Financial Institutions (OSFI) as part of National Bank, with compliance frameworks in place for various asset classes [34] Technology and Efficiency - **Efficiency Ratio**: The company maintains an operating efficiency ratio below 30%, influenced by its asset mix [23] - **Technology Investments**: Credigy is investing in technology and automation to enhance operational efficiency and decision-making speed, particularly in due diligence processes [24][25] Risk Management - **Credit Quality**: The portfolio focuses on high credit quality consumers, with no current credit concerns reported [18] - **Liquidity**: While the company views itself as a long-term value investor, it believes there is liquidity available if needed [19] Conclusion - **Positive Momentum**: Credigy reports strong performance in Q3 and anticipates continued growth as part of National Bank's strategy in the U.S. market [36]

RT Rain (@raincards)Stablecoin Summer is over and school was back in session last night in NYC.@rooqster joined the Stablecon Salon to dive into how onchain finance is transforming private credit by streamlining capital flows, cutting risk, and unlocking new business models. It’s not just talk—Rain is built on this. Our capital-efficient model runs on onchain credit partners, giving us speed, flexibility, and global reach.Thanks for a great session @MorganKrupetsky (@avax), Lily Yarborough (Valinor), Juan M ...