Debate: Liquidity, Valuation, and the Return of the Yield Curve
Featuring: David Sherman, Founder of CrossingBridge Advisors
David Sherman joins Investment Wars for a wide-ranging discussion on navigating today’s complex fixed income and equity markets—from the aftermath of a decade of zero interest rates to the reemergence of inflation, tighter liquidity, and shifting policy dynamics. In this conversation, we explore how investor behavior evolved in an era of “easy money,” what lessons were learned when rates abruptly reversed, and how to think about liquidity, valuation, and ballast in a world of persistent uncertainty.
In today’s episode, we explore:
- How the decade of zero and negative rates conditioned investor behavior and risk-taking
- Why today’s “complicated” market reflects both tightening liquidity and elevated valuations
- The interplay between real rates, inflation, and policy expectations heading into 2026
- Practical frameworks for defining “ballast” in modern portfolios and matching assets to time horizons
- The importance of liquidity risk—and why many investors still aren’t pricing it correctly
- Opportunities and risks in global high yield, including the growing appeal of Nordic credit markets
- Why private credit and direct lending may be less liquid (and less transparent) than investors assume
- How to rethink risk-free rates, personal cost of capital, and portfolio structure in a high-deficit world
Subscribe to Investment Wars on YouTube, Apple Podcasts, and Spotify to ensure you never miss an episode.
For guest opportunities or to share feedback, contact us at [email protected].
—
IMPORTANT DISCLOSURE: Fountainhead sponsors the podcast to further education and critical thinking about the factors that affect markets and investing, and the podcast does not provide investment advice. Investment advice is offered only to clients of Fountainhead who have entered into an advisory agreement and with whom Fountainhead has identified individual objectives, risk tolerance, and other investment needs.
