One Bank Sees ‘Ominous Signs For The World’s Most Important Financial Institutions’

“We do not believe this decoupling will be sustainable. Either the rest of the equities must come under pressure or the financial sector must rally.”


Give Me Some Damn Credit – Or Actually, No. Don’t.

More on the disconnect.

‘Transient Or Persistent’: What Does Credit Know That Everything Else Doesn’t?

Maybe nothing. Consider it unresolved.

No Resolution.

Aaand that’s the week.

Credit Disagrees With U.S. Stocks (Again): Who’s Right?

Spoiler alert…

‘The Snapback When It Comes Can Be Vicious’: Albert Edwards Thinks Credit ‘Isn’t Getting The Message’ (Yet)

“And another straw in the wind may be the performance of a newly issued junk bond of a company called WeWork who have invented an entirely new, nonsense valuation metric – ‘community-based EBITDA’!”

‘Dragon Energy’.

That’s one “very cool” holding pattern.

From Inflation To ‘Quantitative Failure’: What Are Credit Investors Most Concerned About?

“Slim margin”of error for Goldilocks.

‘Rates < HY < IG < Equity': Hierarchy Of Vulnerability Revisited

“This seemingly counterintuitive result has a distinct ‘path-dependent’ flavor.”

Hide The Women And Children.

“Tremendous” things are happening.

A Bearish Start To Your Week

Well, things took a decisive turn for the worst just after the European open…

Trader: ‘I Know This Seems Crazy, But’…

“They’re back. I thought they had all given up, but like an old college buddy who’s going through a bad divorce and just needs a place to crash for a ‘few days,’ the corporate credit skeptics are a tough lot to shake.”

What’s Going On With Credit Vol.?

“…the tail risk associated with the bond trade unwind has become more visible.”

Are The Locusts Coming? Here’s What History Says About Stocks, Credit, Yields And Inflation

“Lions, tigers, and bears, oh my!”

High Note.

And so the holiday-shortened week comes to a close and it delivered everything that could have been reasonably expected of it.