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 viable again. The model increases risk tolerance only when liquidity breadth improves, not just when prices rise.
What the model does
Exposure caps lift from 0.8x to 1.1x when liquidity breadth and volatility filters align. That is the condition we reached this week.
What to do next
See how this changes exposure caps in the dashboard and compare it to your current positioning.
Meridian Intelligence Desk
Editorial