regulatory-arbitrage
2 articles
- Basel III 2026: The Repricing of Bank Intermediation
The March 2026 Basel III reproposal lowers bank capital costs for mortgages, securitization, fee businesses, and scaled trading, but offers little relief for middle-market corporate credit. Risk remains in private markets while banks increasingly finance it through senior fund-finance structures.
- The Private Credit Expansion: Regulatory Arbitrage, Liquidity Cracks, and the Re-Intermediation of Bank Balance Sheets
Private credit AUM has grown from $158 billion in 2010 to over $2 trillion today. This analysis examines the regulatory arbitrage that enabled the expansion, the emerging liquidity stress tests, and why banks are re-intermediating rather than retreating.