Mounting risks in a $14 trillion corner of financial markets are a threat to economic stability, research firm says

• Private market funds are finding creative but little-regulated quick fixes to avoid defaults under tighter monetary policy.
• Those strategies make it tough to assess the underlying quality of the assets, Rosenberg Research says.
• The firm warns that without more scrutiny from regulators, private markets pose a systemic risk.

Private markets have ballooned in size in recent years and are brimming with hidden risks, Rosenberg Research said this week.