RE: Lloyds Resilience19 Nov 2025 23:12
Pension funds. Insurance companies, Endowments, Sovereign wealth funds, High-net-worth individuals..
They package loans like mortgages, auto loans, credit-card debt) into securities and sell them to investors. the Money from the sale finances new loans.
Ironically, some shadow lenders borrow from actual banks.
Banks provide warehousing lines, Credit facilities, Leverage loans, this allows shadow lenders to amplify their lending.
DYOR