Why? Because 1) PBs are emerging as a major player and lender in crypto markets and2) The current lending standards of PBs are tight, largely lending to low drawdown strategies (like delta-neutral), and presents low systemic risk. But, 3), if expected returns of delta-neutral strategies decline, then PBs may move out the risk curve in terms of who they are willing to lend to and what services they offer, which could brew systemic risk.
Related posts
-
Sam Bankman-Fried and Changpeng Zhao: Two of the biggest crypto titans are sentenced
Disclosure: The views and opinions expressed here belong solely to the author and do not represent... -
Match Systems Announces Recovery of $68 Million in Stolen Cryptex Crypto Assets
Match Systems, a cybersecurity company specializing in Anti-Money Laundering... -
Veteran Trader Peter Brandt Warns of SEC’s Full-Scale Assault on Crypto Staking — ‘It’s Going to Be a Bloodbath’
Veteran trader Peter Brandt has predicted a severe regulatory...