“This Sort Of News” Is Bad, But “There’s A Wall Of Money Out There”

You're a trader and what you thought when Brazil plunged headlong into yet another corruption scandal was something like this: Gee, with EM priced to perfection and the Fed looking to tighten right alongside China's efforts to squeeze their interbank market, EM needs a black swan-ish political crisis about like it needs a hole in the head. But you'd be mistaken. Because when there's no end in sight to the artificially suppressed vol regime, you have to be a carry trader. If you're not, you're an