Part 7/10:
As liquid cash in money market funds remained relatively flat during this period, the rapid accumulation of cash in reverse repo accounts raises significant concerns and questions. The mainstream explanations provided often seem to underplay the complexity involved, leaving many analysts at a loss.
Personal Views on the Outlook: Will a Crisis Emerge?
After analysing the current trends and arguments laid out by experts, one’s perspective on the potential for an imminent liquidity crisis might shift. Contrary to prevailing theories suggesting an inevitable crisis, some argue that the overall market dynamics are supportive enough to mitigate risks.