06 MORTGAGE NEWSLETTER from $3tn of assets to $11tn in a decade, the Bank said. Hopefully the results will be positive as there could be impact on the overall lending market as well as the specialist market if lenders do not or currently cannot meet the tests required. To sign off from this newsletter there is still plenty of business out there. The work has not gone away. Clients need advice more than ever. There is a complexity to the market and to client wants and needs, that only advisers can break through. Clients are coming off deals at all points in the year. Whether products taken when rates were much lower or indeed higher, and they want someone they trust to talk them through their options. For example, you can help mitigate the rate pain for those coming off five-year deals, and cut costs for those coming off two-year products. As an adviser, you have a lot of choice in the market. There are many lenders, many products, and more routes to place a case than we have seen for some time. Lenders will lend. They have the funds. They want the volume. They want to keep existing customers and bring in new ones. So the opportunity is there. If you stay close to those clients and bake that into your business model – with help on data, tools, and contacts – there is plenty of good business to be written. Paradigm are here to help you do that: to give you access, to give you information, to help you make sense of lender behaviour, and to be on your side when you need a voice in the room. I hope you enjoy reading this newsletter, my thanks to the other contributors and have a great Christmas and a happy new year, see you on the other side! and strong we cannot go back to the days of 2007 and the “wild west” of lending. The great news is “Britain’s largest life insurers have passed a key stress test from the Bank of England amid fears a shadow banking bubble could leave them vulnerable to a market crash. The 11 insurers, were given a clean bill of health by the watchdog after being tested with an imagined market meltdown that wiped out almost £9bn of their capital. According to the Bank of England, even if billions of bonds were downgraded to junk and the stock market crashed, they would still hold 154pc of the regulated amount of capital required in a crisis – down from 185pc before the hypothetical crunch. “All firms continue to meet their regulatory capital requirements, underscoring the sector’s robust starting position and ability to absorb significant shocks of the kind tested in the exercise,” the Bank said. The second area of interest is The Bank of England has launched a stress test for the shadow banking industry amid warnings of “cockroaches” lurking in the $11tn (£8.2tn) market. Major financial groups, including KKR, Blackstone, Apollo and Goldman Sachs Asset Management, have all signed up for the new stress test. They will be subject to a hypothetical global economic and financial crisis to study the potential impact on the UK, its financial system and the wider economy. The system-wide exploratory exercise (SWES) will take place next year and report its full conclusions in 2027. The decision to subject private equity investors to the same kind of rigorous tests as banks follows enormous growth in the private credit industry, which is often referred to as shadow banking. Private equity and private credit have expanded
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