Intelligence/Jan 18, 2026/4 min read
Liquidity tilts risk assets higher as funding stress eases
Short-term funding pressure eased this week, lifting risk appetite. We map the flows and what it changes in exposure.
liquidityratesrisk
What changed
Funding spreads narrowed and short-term rate volatility compressed. That combination typically opens a window for tactical risk-on positioning.
Why it matters for allocation
When funding stress declines, carry becomes more viable. The model increases risk tolerance only when liquidity breadth improves, not just when prices rise.
What the model does
The model lifts its reference cap from 0.8x to 1.1x when liquidity breadth and volatility filters align. That is the condition reached this week.
What to do next
See how this changes the current context and compare it with your own policy.
Meridian Intelligence Desk
Editorial