Article source
Financial Times
Article date
Tue, Aug 1, 2017
A key advisory committee to the US Treasury warned on Wednesday of the risks surrounding the “surge” in corporate borrowings and “potential spillovers”, as the Federal Reserve prepares to reduce the size of its $4.4tn balance sheet.
In a letter to Secretary Steven Mnuchin, the Treasury Borrowing Advisory Committee said there was the possibility for a “meaningful, but not systemically risky, decline in both credit and equities” in an unfavourable market.