Bank of America warns of credit stress risks
Bank of America analysts flagged that tightening credit conditions could spark “passive selling” across equities — when funds have to offload positions because liquidity dries up, not because fundamentals change. They view this as an early bear-market signal if lending stays weak. It’s not a panic call, but a heads-up that systemic risk builds quietly when credit markets strain and passive flows amplify every downturn.
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