The current environment combines unprecedented challenges: a 35-year bond bull market ended in 2022, creating bond portfolio losses; financial institutions took excessive duration risk because yields were too low to compensate for credit risk; the full impact of the 12-year credit bubble has not yet surfaced, particularly in private credit intermediation.
factualpending
Speaker
Seth KlarmanEvidence Quote
“we've had a 35-year bond bull market up till 2022...financial institutions...couldn't get paid by taking credit risk...some financial institutions do what like Silicon Valley Bank did and end up with significant mismatches...I'm just not convinced...I'd be nervous”
Created: 8/12/2026, 5:57:12 PM
My Notes
Loading notes...