What happens over the weekend no longer remains confined to the weekend.
“And with CSPP holdings at €116bn and growing, a big ETF at that!”
“Bubbles, bubbles, every where, Nor any one to pop.”
You have been warned (again) (and again) (and again).
“The Fed and BoE are once again presiding over a credit bubble, with the BoE in particular suffering a painful episode of cognitive dissonance in an effort to shift the blame elsewhere – the credit bubble is everyone’s fault but theirs.”
Can I borrow your double-edged sword?
I have absolutely no idea how any of that is sustainable and/or realistic.
Ok, it looks like some folks have seen enough.
Kind of makes you think…
“It’s important to remember that this is merely a microcosm of the larger dynamic at play across assets and across regions.”
“So how then might the story line read? That all this nonsense that globally rising rates and widespread balance sheet reduction just can’t be a calm experience. Investors simply own too much toxic “financial products” to make that likely.”
“This was last seen in 2007, just before the bursting debt bubble blew the global economy and financial system to smithereens.”
“Despite overall mixed macro data and the failure to pass health care legislation in the US, spreads on virtually all indices have converged back to their post-crisis tights.”
Listen, here’s the thing: at some point, credit markets are going to wake up. Now I’ll confess I have no idea when that’s going to be and if the last 13 months have taught us anything, it’s the DM central bank liquidity tsunami is capable of keeping spreads near their post-crisis tights even in the…