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there's little sign of extreme leverage in the system. last week, Chair Powell mentioned the lack of risk-taking in both the banking and financial system, and we'd agree… for now the Tricolor and Firstbrands collapse seem to be (almost) isolated incidents. leverage ratios in private credit and other riskier credit markets have remained flat and have been moving downwards slightly for years. the ability of private credit to service debt (debt service ratios) has also improved to ~1.5x from 3x over the last few years as well. a big, controversial trade occurring behind the scenes right now invo

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