In addition to reintermediation and the pursuit of new capital, we are seeing a significant process of de leveraging. Entities with high leverage and/or complex structures have come under significant pressure in recent months as share markets question their resilience, and lenders seek a reduction in risk.
The Federal Reserve’s recent increase in interest rates by 25 basis points marks the start of a move to bring the cost of money in the United States back to long-term equilibrium levels, against a background of robust economic growth.