The Bank of England announced a doomsday stress test for private markets featuring 7% interest rates, a 35% collapse in UK share prices, a 400 basis-point increase in leveraged loan spreads, and a range of artificial intelligence disruptions. Forty-six firms have agreed to take part, including alternative asset managers Apollo Global Management Inc., Ares Management Corp., Blackstone Inc., KKR & Co., and Pemberton, as well as traditional asset managers BlackRock Inc., Legal & General Investment Management, and Fidelity International, along with institutional investors and banks that provide funding. The exercise, a global first, will analyze participant responses to a severe but plausible global recession over five years, with the first year featuring 7% inflation and a volatility index at 40, followed by a deep global recession in year two where UK GDP falls 4% and the FTSE all share index dips 35%. The Bank of England will share only aggregate results, with initial information expected in July and a final report in 2027.
Apollo Global Management LLC Class A
KKR & Co. Inc.
Ares Management LP
ASML Holding N.V.
BlackRock Inc
Blackstone Group Inc