Liquidity Strains Persist Amid Tax Drains, Yield Volatility, and Post-Opex Exhaustion
Key Questions
What is causing liquidity strains?
TGA and tax drains pull $2.9-3.1T from reserves and credit, amid yield volatility and post-Opex exhaustion. VIX rises despite records.
How are spreads and correlations affected?
Credit spreads at 346, HY at 268bps; correlations 88-94% with dispersion at 37.5 peak. Breadth at 59% limits upside amid swings.
What supports buybacks amid strains?
US banks authorized $33B in buybacks amid $1.2T S&P trend, despite liquidity pressures from yields and oil climbs. S&P faces potential pullbacks.
TGA/tax drain $2.9-3.1T reserves/credit 346/HY 268bps/VIX rise opex despite records; dispersion 37.5 peak/corrs 88-94%/breadth 59% amid oil/yields swings, tech concentration fragility tests rotation.
Sources (2)
Updated Apr 22, 2026