Collateralized loan obligations (CLO) concentrated in market-based vehicles, not banks
- Does not see corporate debt rising to the level of systematic risk
- Most CLO debt concentrated in market-based vehicles, not banks
- Most CLO debt is not runnabe, though some mutual funds could see accelerated withdrawals
On the dollar as a reserve currency, Powell says:
- being reserve currency has benefits and costs
- one cost is a lack of fiscal discipline
- Does not see near-term risk to dollar as reserve currency
- Don't assume USD status as reserve currency permanent
- US needs to address longer-term fiscal issues