Well, I didn’t have long to wait after my previous note this evening.

The St. Louis Fed just announced it has tweaked its Financial Stress Indicator (overdue) and it now shows stress levels above the point of the Lehman failure.

And specifically, the explanation notes:

One type of risk prominent in the 2008-2009 financial crisis is once again present—in the current COVID-19 (novel coronavirus) crisis. It is the inability of many financial institutions to secure funding to finance their short-term liabilities, such as repurchase agreements (repos). This type of risk is known as “liquidity risk.”

Forewarned is forearmed.