"Under the current U.S. administration, the regulatory approach toward the private market has changed, with priorities shifting from enhanced disclosure requirements to a greater emphasis on accelerating capital formation," the ratings agency said in a report. To meet retail investors' expectations for quicker access to cash, asset managers are rolling out products with periodic liquidity windows, Moody's said. But in volatile markets, sudden redemption requests could strain these funds, creating a mismatch between available liquidity and what investors expect, Moody's added. The ratings firm also cautioned that as competition for high-quality assets intensifies, some asset managers may take on greater risks, investing in lower-quality assets to keep pace with surging demand. Reporting by Prakhar Srivastava in Bengaluru; Editing by Maju Samuel