The collision of liquidity headwinds that is looming, but no one is talking about.
- 7 days ago
- 1 min read
The collision of liquidity headwinds that is looming, but no one is talking about.
Mavik CEO Vik Uppal spoke with Sam Vadas of Schwab Network on the two distinct but converging liquidity headwinds facing the market - the war with Iran and the pressures mounting in the private credit space. The potential pullback of Middle Eastern capital, cracks in private credit, and pressure in commercial real estate are all risks that could lead to forced selling. And with liquidity potentially thinning and valuation resets still early, we could be entering a period of heightened uncertainty and volatility where the range of outcomes is widening. This cloud of uncertainty doesn’t just impact the near term, it sets off second- and third-order effects that could keep markets choppy far longer than expected.