00:00Catherine, I'm going to start with you because $180 billion of exposure when it comes to the
00:05big Wall Street banks. Put that number into context for us. How should I be thinking about it?
00:10So if you're listening to the big bank CEOs this week, they all are using very similar language,
00:16which is number one, they're saying we are in a very protected, we're in good position here
00:23moving forward. So they're not worried about that number that you're highlighting. And number two,
00:29part of the reason that they are saying they're in such a good position is because of the structural
00:34protections that they have in place. They went into greater detail on the call with analysts this
00:41week to discuss what protections that actually looks like. Number one, markdowns. None of the
00:47firms really discussed actually having to mark down, at least for Bank of America and Citigroup,
00:53both saying that they have not experienced any losses as it relates to their private credit
00:59portfolios. But moving forward, they're saying that that is some of the protections that they do have
01:05at their disposal when it comes to adjusting and handling any potential exposures and stress that
01:13they could see in the future. And Olivia, I mean, we've been talking about pressure on private credit
01:18funds as it relates to redemptions. But you reported this week that they're also facing pressure when it
01:23comes to how Wall Street banks are approaching their arrangements with a lot of these funds.
01:28Definitely. Yeah, I think the scrutiny around private credit has extended to the banks where
01:32they're looking at the financing that they've extended to these funds and what loans are actually in that
01:37collateral and maybe moving some around to give them some more protection there.
01:41Yeah, it's certainly an interesting story. And you have to wonder, I mean, how might this play out just
01:47briefly here? And have we seen a moment like this one before?
01:50I don't think we've seen a moment like this one before because private credit has never been the
01:54size that it is today. But I think everyone's watching both bank earnings and BDC earnings very closely.
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