Beware the three Ls: leverage, liquidity and lunacy
In the long run bubbles always deflate, often when least expected
Related reading
We must be mindful of the risks of private credit
The sector remains untested in a severe or prolonged economic downturn
There is method in the market’s madness
But it relies on a host of rosy assumptions going in investors’ favour
The liquidity curse for investors
Instant ability to trade tempts many to make bad decisions
Non-bank lenders may be fair-weather friends
Research shows they don’t just retreat in a crisis — they run for the exit
The Fed’s delicate balancing act over liquidity
Optimism and greed complicate the central bank’s decisions during market disruptions
When financial and geopolitical waves collide
We are living in a ‘barbell’ world where international threat meets technological opportunity