El-Erian Says Receding Liquidity Is Biggest Risk to Markets
- He sees potential for difficulty in raising corporate capital
- Credit veteran asks whether investor risk-aversion is on rise
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Markets influencer Mohamed El-Erian says the potential evaporation of liquidity is a big risk to global markets and economies amid signs that capital is becoming more expensive and difficult to acquire.
“The one risk I’m really worried about is liquidity risk,” El-Erian told Bloomberg Television’s The Open on Friday. “We’re starting to see markets locked out of funding. Issuance in June was very low. Companies either were unwilling or unable to refinance themselves.”