Market Chaos Puts Wall Street on Alert for Funding Strains (1)

Investors are scouring US dollar funding markets for signs of disruptions as President Donald Trump’s tariffs causes investors to dump American assets en masse.

The concern is that big banks and other dealers are at risk of getting hit, all at once, by a wave of investors who want to liquidate their positions to avoid the potential fallout of an escalating global trade war. That type of exodus stands to cause an episode similar to when Covid shuttered cities in 2020 and panicked investors rushed to sell bonds, leading to a crunch in the Treasury market and a selloff ...