the views i heard these days1) higher borrowing cost (wider credit spread) which has two implications 1.1 less M&A, LBO. M&A and LBO has been helpful in supporting the stock market 1.2 tougher biz environment for most business which is also negative 2) i-banks prefer, and most of them have, lean balance sheets. If they encounter major losses bcuz of their exposure to Credit related instruments, there is a posibility that they have to liquidate other instruments like investments in high-quality stocks or carry trades in order to get more cash to meet all cash outflow obligations. This will add further downside pressure to stock market, especially the emerging market

the views i heard these days1) higher borrowing cost (wider credit spread) which has two implications 1.1 less M&A, LBO. M&A and LBO has been helpful in supporting the stock market 1.2 tougher biz environment for most business which is also negative 2) i-banks prefer, and most of them have, lean balance sheets. If they encounter major losses bcuz of their exposure to Credit related instruments, there is a posibility that they have to liquidate other instruments like investments in high-quality stocks or carry trades in order to get more cash to meet all cash outflow obligations. This will add further downside pressure to stock market, especially the emerging market