Launching CDS Heatmaps
Equity heat maps are a dime a dozen. And for all intents and purposes, worthless, so long as only algo-sutffed computers (and ScottTrade retail analysts) are the driving marginal purchasers. As Zero Hedge has long contended the real action is and increasingly will be in credit (we will be shortly expanding on this conviction), especially once the "even bigger one" happens, and all those who have gotten burned trading equities under the wise advice of Jim Cramer or Goldman Sachs for the nth time, finally decide that methadone is better than an nth+1 recurrence.
Zero Hedge is starting a presentation of credit heatmaps, specifically CDS: easily the most liquid product in the market currently (unfortunately still not for retail consumption but give it 12 months...)
Our first such heatmap just so happens to coincide with a month in which it may as well be called a redmap. We hope to make this a daily feature on Zero Hedge (the heatmap, not the bloodbath).
Legend: each block consists of 4 distinct sublocks, which represent the activity of the 10,7,5 and 3 year maturities, starting in the top left and going clockwise. The size of any given block is in proportion to that particular name's weighted beta. Also, don't forget: red blue is tighter, blue red is wider [apologies for the confusion: as many readers corrected, blue is indeed tighter and vice versa].
North American Index Heatmap (Month to Date Change)
North American Index Heatmap (Daily Change)
And a simpler representation: all 5 year on the runs in IG and ITRAXX, once again sorted by beta weighted bucket (this can alternatively be presented even simpler on an equal weighted basis: happy to consider reader feedback on this).