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The deal is occurring amid the late stages of a credit cycle. “We’ve had this unbelievable economic expansion for over a decade, so it’s not unusual for investors to be looking at more unusual sectors,” said Mayra Rodriguez Valladares, a bank regulatory and capital markets consultant in New York, referring to hospitals and private prisons. For private equity, the Department of Defense is a safe, opaque bet. “It’s incredible how little we know of how Department of Defense decisions are made and how funds are channeled,” said Rodriguez Valladares

“KKR can’t have it both ways,” said Mayra Rodriguez Valladares, managing principal at capital markets consulting firm MRV Associates. “If it really has ESG policies, it can’t be involved in any way, shape and form with Safariland,” she said. “They can sell the loan. They are not obligated to keep it,” she said, referring to KKR’s stake in Safariland.

“There is an incredible diversity of community, regional and global banks in the U.S., as well as credit unions,” she said. “Consumers have a lot of choices for financial services in this country. It does not have to be an either-or situation. Individuals can do online and brick-and-mortar banking jointly.”

“Mayra Rodriguez Valladares, managing principal at New York-based MRV Associates, which trains bank examiners and finance executives, points to the uncertainty caused by trade wars.”

Mayra Rodriguez Valladares, managing principal at MRV Associates, said, “There is a good chance that the Fed will pause in rate cuts.” “To cut rates would be a mistake,” she said. “This extraordinary decade of such low interest rates has led to a perverse incentive for company executives and private equity firms to have record levels of debt, both in bonds and loans. The rising amount of below investment grade bonds and loans could significantly amplify the effects of a recession.”

A growth in auto loan defaults does signal serious financial duress for borrowers, said Mayra Rodríguez Valladares, managing principal of MRV Associates, told Benzinga. “Auto loans tend to be the last loan that borrowers default, since they need their car to drive to work.”