Mindset Memo: Interconnectedness and Risk in U.S. Credit Markets
On October 14, the Securities and Exchange Commission hosted a Roundtable to discuss issues raised in the report, “Interconnectedness and Risk in U.S. Credit Markets”. In the U.S. credit markets, banking and non-banking entities and intermediaries are intricately and inextricably interconnected. The report identifies these interconnections and discusses how the COVID-19 economic shock reverberated through the credit markets in March and April 2020. During the Roundtable, U.S. and international regulators and other experts discussed the interconnections within our capital markets and the impact of the COVID-19 economic shock. SEC Chairman Jay Clayton also held a fireside chat discussing the interconnections between banking and non-banking entities and intermediaries in the U.S. credit markets. The attached memo from Mindset DC summarizes the sessions.