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‘We Feel The Need To Shout About This Risk Even Louder’: Angels In Europe

Fallen angel risk, European style.

Fallen angel risk, European style.
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5 comments on “‘We Feel The Need To Shout About This Risk Even Louder’: Angels In Europe

  1. How do they hedge the credit risk? In US they buy low duration bonds (3-5 years, probably one among the causes of the curve inversion by the way), VIX futures (CDS market not enough thick after 2008).
    Short Dax?

    • I’m gonna guess they’re ultimately long USD as a hedge also, as dollars will only get bid more even in a European crash. Hence the curve inversion’s high-priority warning for the overall economy worldwide.

  2. How much of this is Enegy related? Those energy related should be stronger in 6 months when oil prices go back above $70/ bl.

    • I didn’t realize an oil rebound to $70 was a certainty… You seem quite confident in that assessment.

    • To my knowledge only 8%. The main distribution of European corporate bonds is 20% utilities, 20% consumer discretionary, 15% industrial, 13% communications

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