🇺🇸 Bank of America strategists have stated that additional pressure on the credit market could trigger a new wave of dumping in the stock market, as long-term investors, including pension funds, will be forced to sell assets. Savita Subramanian of Bank of America Securities stated that if the fluctuation in the private credit market continues, institutions like pension funds may be compelled to sell index funds to avoid a valuation adjustment of private assets. She emphasized that passive investment dominated the S&P 500 index, so a market drop would force index funds to engage in additional dumping.
