Deutsche Bank Clients: If Le Pen Wins French Election, European Stocks Will Plunge

So by now, those who frequent these pages are well aware of our views on the extent to which French election risk is priced into markets. Put simply: it's not priced in. Not even close. Not in equities, not in VSTOXX (although the kink in the term structure reflects some effort to position for a "sh*t hits the fan" scenario), and most assuredly not in € credit which, as the following chart from BofAML underscores, is just asleep at the proverbial wheel... (hint: how much compensation wo