Why Collateral Matters More Than Most Investors Realize

Financial markets do not only run on capital.

They run on trusted collateral.

In modern funding markets, high-quality collateral has become one of the most important assets underneath the global financial system.

Treasury bills and short-duration government debt are increasingly valuable not just because of yield — but because they can still move through the system when liquidity conditions tighten.

Sometimes the safest assets become the most important infrastructure.