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Jamie Coutts highlights a shift in the liquidity debate, emphasizing that discussion is now focused more on the number of claims competing for capital rather than solely on a single debt maturity wall.
According to Coutts, over the past five years, U.S. public debt increased by 6.8% annually, while global liquidity rose only 2.2% per year. His measure of U.S. net liquidity decreased by 3.0% during the same period.
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Coutts previously examined the relationship between artificial intelligence trends and financial leverage in a post titled Margin debt reaches 19-year highs as liquidity slows. In that analysis, he noted margin debt rising to levels not seen in nearly two decades. The developments point to heightened attention on liquidity pressures as capital claims increase.