The Bank of England sets "doomsday scenario" for private market stress test

Glonghui, June 19 | The Bank of England announced on Friday that it will conduct a stress test on private markets. The test scenarios include interest rates rising to 7%, a 35% crash in the UK stock market, a 400 basis points widening in leveraged loan spreads, and various artificial intelligence-related shock events and other extreme risks. According to the Bank of England, a total of 46 institutions will participate in this stress test, including alternative asset management firms such as Apollo Global Management, Ares Management, Blackstone, KKR & Co., and Pemberton. Participating traditional asset managers include BlackRock, Legal & General Investment Management, and Fidelity International. In addition, institutional investors and financing banks are also involved in the test.