The BoE has started a second system-wide exploratory scenario exercise relating to the private markets. This one focuses on how the ecosystem operates under stress and how this could impact the UK economy and financial stability. The previous exercise looked at gilt, gilt repo and sterling bond markets. The new exercise wants to look at how financial institutions active in private markets would respond to a severe but plausible global downturn and how interactions at system level could amplify stresses.
A final report on the exercise, which will take place over the next year, will be published in early 2027.