Mapping The Divergence In Credit And Equity

Tyler Durden's picture

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
pooplagrande's picture

move along...nothing to see here folks...just a silly blogger with some pretty pictures...move along please.

Screwball's picture

I was watching that.  What's up with this?  I have no idea.

Anonymous's picture

Anulus Stimulus V. 2.0

deadhead's picture

someone upgraded SPG today as i recall...sorry, don't have a link but it's in the news.

naturally, all the momos are expecting more.

then again, why not? it is the official Fed policy that banks will not be reprimanded by extending CRE loans that are multiples greater than the underlying collateral.

got a 50 million loan on a bldg worth 25 million? no phucking problem says the Fed. it must be the new math of lending...... to think i spend 16 yrs in banking saying "no" to people when their loan request exceeded their collateral or heavens forbid, i had to say "no" on a loan where their gross debt income ratio exceeded 40%.

Gilgamesh's picture

DH, my comment (and Screwball's) was mostly about the 3:30ish monumental spike in IYR - price and volume.  This has happened often lately with IYR.  If you haven't already, look at the volume accompanying the EOD move.  Something is afoot - I had assumed it was prop jobs for painting secondaries on the underlying stocks, but haven't seen much of that lately.  Also, there seems to be some algo(s) correlating the big CRE REITs with gold price.  I get the inflation link (inverse USD) with both, but these REITs are trading so far decoupled with reality... And it's not like gold is trading with the inverse DXY anymore, what's with the coupling?

Screwball's picture

Thanks to both for the info.  I have noticed the same on IYR, Gil, and it seems funny.  Your point on the Fed announcement about the REITs is a good one DH, I had forgot about that.  Looks like they may have given back the last half hour ramp AH.  Somebody fat fingered a joy stick.

Anonymous's picture

move along? and absolutely nothing to see? these comments most certainly are coming from clueless equity traders. let's just see which market has got it right - i mean given the tremendous growth in top line revenues across S&P 500 companies, it makes sense for equity markets to continue ascending higher...nothing to see here, move along

VegasBD's picture

or they forgot to add the </sarcasm> tag

Anonymous's picture

Can we see this comparison over a longer timeframe? Maybe these things are always in divergence, or maybe they usually diverge more...

Anonymous's picture

It's beginning to look alot like Christmas. Every stock I see, every chart the same. MOMO about to get hammered really badly.

Chopshop's picture

TD, this is neat n all, but what does it say about how high gold will go tomorrow?  

how does this snapshot prove that uncle buck will close with a 6 handle tomorrow?  LOL ... 'silly bond n credit markets, equities are for kids!' 

seriously though, who in their right minds is still actively selling vol here? 

longjohnshorts's picture

CS, fact is, nobody has a clue about where anything is going.

A committee that meets half-way between Wall Street and K Street has decided it has become too risky to permit fundamentals to dictate asset pricing.

Hence, the only operational factors now are liquidity and crisis. Whenever the latter is absent (and the precise timing of a crisis event is, by definition, unknowable), the former holds sway. Hence, the ongoing asset-price melt-ups across the board.