The Equity Funding Squeeze Briefly Revisited

A month or so ago, I wrote a bit about an under-the-radar funding squeeze for equity financing. The simple version -- i.e., leaving out superfluous jargon and stripping the issue down to the basics  -- goes like this. Equities upside, and specifically US equities upside, is in high demand, which is to say investors want more exposure. That exposure has be financed, and dealer balance sheets are finite. When insatiable demand meets finite supply, the cost of whatever it is -- in this case fund