Equity investors like to believe that credit market stress is a distant problem confined to distressed balance sheets. But if you want to know where stock market liquidity is actually headed, stop looking at headline equity indexes and start watching the credit “chain.”
Let’s take a quick roll call. Long-term Treasury yields remain anchored near multi-year highs. AI hyperscalers are flooding the bond market with hundreds of billions of dollars in fresh debt. The cost of capital just reset across the entire financial system.
