📊 Bond Supply Tightening Risk

Good Morning Investors,

The dominant macro force is liquidity rather than earnings. Rising Treasury issuance is absorbing capital and tightening financial conditions for risk assets, while softer labor signals reinforce a slowdown narrative without yet delivering clear policy relief.

This mix weighs most heavily on speculative small companies. The market is rewarding strong balance sheets, dividend support, and exposure to energy or essential services, while penalizing firms dependent on equity financing. Until bond market pressure eases and fund flows stabilize, volatility and further stress in venture and biotech heavy segments remain likely.

Matthias Schneider
Editor at Analytica Investor