LIQUIDITY NEWS. CDS SPREADS EXPLOSE GLOBALLY
[Latest Global Dollar Liquidity measure: +11.9% annual growth rate; latest Endogenous Liquidity Index: -48.5%]
[1] Credit spreads are surging globally. Most of the international CDS indices that I track are posting new highs in terms of spreads. Emerging markets appear to fare a touch better as of this writing. But take a look at Markit's iTraxx series. All of them, without exception, are trading at new highs in terms of spreads: Europe, Europe Crossover, Japan, Asia ex-Japan, Australia, and Japan 80. There is a whiff of panic in the air, as some spreads have surged more than 30% in just one session. Ladies and gentlemen: the credit spread explosion has gone global, no doubt about it.
[2] A Petrodollar tsunami? (Liquidity @ Financial Times). Morgan Stanley's Stephen Jen warns about the upcoming "petrodollar tsunami" that is likely to occur as oil trades at $100/barrel. Here's the key excerpt: "At $100 a barrel, the total proven reserves of the oil exporting countries is about $104,000bn – equivalent to the combined total value of publicly-traded equities and bonds in the world". Jen thinks that the tsunami has two broad implications in terms of financial markets: (a) equities will outperform bonds; (2) emerging market currencies are likely to gain both in terms of the dollar and the euro [Stephen Jen: "Petrodollar tsunami to hit euro and dollar", Financial Times]
2 comments:
Believe me, the "total proven reserves" of most of the exporting countries are a fiction, especially in the Gulf. They're still worth a lot, though.
MG
It was on the newspaper when he saw the watch again. How time flies! 50 years had passed since he saw it the last time. He never stopped finding it during the 50 years. He was too old to remember too many things. However, everything about her was still engraved in his mind and never disappeared.[url=http://www.sunglassescool.com/marc-jacobs-sunglasses.html]Marc Jacobs sunglasses[/url]
Rolex has excellent styles for both males and females, and the price ranges enormously so that most consumers can have a satisfying Rolex. This ladies¡¯ Rolex President is the ideal watch for the excellent females. It is made of 18k yellow gold, including the crown and the flutes bezel. it has the custom champagne diamond dial with 10 round cut diamonds. The crystal is of scratch-resistant sapphire conversion. The President Bracelet is powerful, giving the watch a modern look. It is the synonym of luxury and elegance and is suitable for the finest tastes. Some other popular dial colors including silver and white and mother of pearl are also provided. The consumers can choose according to personal taste. This style is very popular among today¡¯s young professional women.
Post a Comment