Thoughtful Money with Adam Taggart Liquidity Drain To Disrupt Markets In 2025 | Michael Howell
42 snips
Oct 17, 2024 
In this engaging conversation, Michael Howell, Founder and CEO of Crossborder Capital, shares his insights on global liquidity and financial markets. He predicts a potential liquidity drain in 2025, driven by rising debt refinancings, which could disrupt market stability. Howell emphasizes the cyclical relationship between liquidity and asset prices and flags inflation and corporate debt as significant risks. He also discusses the Federal Reserve's tightening policies and their impact on the U.S. Treasury market, warning investors to prepare for a bumpy road ahead.
AI Snips
Chapters
Transcript
Episode notes
Current Economic Assessment
- The global economy is currently slow but not in a recession, which is generally favorable for investing.
- This environment leads to increased liquidity, which often boosts asset markets.
Maturity Wall Risk
- Corporations fund themselves at low interest rates, but these debts mature, requiring refinancing at potentially higher rates.
- This refinancing burden poses a risk, especially with a large global debt load requiring rollover.
Lag Effect and Maturity Wall
- The lag effect of interest rate hikes will eventually manifest, particularly through the maturity wall.
- Higher interest rates create a delayed burden as debts mature and require refinancing at elevated rates.