We just witnessed the biggest deleveraging event in over a decade.
This wasn't some random blip. When leverage unwinds at this scale, it reshapes positioning, liquidity flows, and risk appetite across equities, rates, and FX markets.
What comes next matters more than what just happened. Watch for:
• How fast risk appetite returns (or doesn't)
• Whether vol stays elevated or collapses back down
• If we get a sustained rotation out of crowded trades
• Whether this was a liquidity shock or a structural shift
Deleveraging creates opportunity, but only if you're positioned right and not caught chasing the bounce too early.
This wasn't some random blip. When leverage unwinds at this scale, it reshapes positioning, liquidity flows, and risk appetite across equities, rates, and FX markets.
What comes next matters more than what just happened. Watch for:
• How fast risk appetite returns (or doesn't)
• Whether vol stays elevated or collapses back down
• If we get a sustained rotation out of crowded trades
• Whether this was a liquidity shock or a structural shift
Deleveraging creates opportunity, but only if you're positioned right and not caught chasing the bounce too early.