Credit's Not Buying It

Tyler Durden's picture

We discussed earlier how various non-US-equity asset classes were differing in their opinions on the likely events going forward. Even more short-termist, it seemed a large number of people really didn't want European financials exposure. Well, this afternoon has seen volumes dry up in ES and limp higher as IG and HY credit spreads have moved wider and wider quite comfortably. While we can never be sure, it seems credit professionals are not so comfortable being long and unhedged into the weekend.

UPDATE: and the more broad-based risk basket diverged too...

Charts: Bloomberg

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Hansel's picture

2% interest rates are not compelling for savers.  That money is going elsewhere.  Some blue chip stocks are paying 6% dividends.  A 2% 10-year is about as far from a buy as I can think of.  Look at the chart of yields this year.

d00daa's picture

this is your typical retard, rip-your-face-off bear market rally.

major indexes crash 18-26% in a week.  amzn up 36% in 19 trading sessions since initial aug crash to new highs ON ZERO NEWS.

does that kind of action happen in bull markets??  at bear market bottoms???  hell fucking no!

sell the news wednesday.

Belarus's picture

The credit guys being more conservative than the equity guys could just be taking cover before the Chairsatan as a, you know, precaution of the "great surprise" not transpiriing. 

Iam Rich's picture

Quite the little rally into the close and into the AH.  Who didn't see that coming.  Let me get this straight at 3:35p and sell at 4:20p.  By the way...really do like the chart porn.  Looks like Wile E Coyote heading over the cliff.

Al Huxley's picture

Credit's a drag, credit's the designated driver of the global casino, always worrying, always complaining that it's time to go home. Equities are where its at - the 'spike the punch, smash the guitars, drink straight from the bottle, puke in the flowerbed' partiers who, even when they get their asses kicked by the bikers at the after-hours club they decide to stumble into on the way home, always shake it off and are ready to go the next day. Fuck credit, hang with the equities, they may be stupid, but you get better stories with them.

centerline's picture

Have you been spying on me?

centerline's picture

The rubber band is getting pulled very tight now.  The snap-back is going to be violent.

Bithead1's picture

Who clogged up the fan with all this brown stuff?  Next time please have the decency to perform a courtesy flush

flyr1710's picture

can't wait for the compression to start next week!

Kali's picture

it seems credit professionals are not so comfortable being long and unhedged into the weekend.

Hell, would you be?  I don't even leave more money in my checking account than to cover bills over the weekend.  I don't like to leave anything subject to counterpary risk, including the US $, into the weekends anymore.  : )

Hephasteus's picture

The canonical five murders were perpetrated at night, on or close to a weekend, and either at the end of a month or a week or so after.

I read this in a jack the ripper book or a comex delivery schedule. I forget which.

John McCloy's picture

It is a complete disconnect from treasuries.

Complete disconnect from credit.

Complete disconnect from the EUR.

  Promises of bailouts, faulty accounting and corrupt government are the only thing that fills the gap. Volume proves all these prices are lies all over again and one week this market will lose 2000 points BEFORE the margin calls. Stay short and be happy because the markets are reliant upon a daily not even weekly tax payer subsidization just to pretend their are solvent along with austerity. Eventually a nation will leave the Euro or a black pterodactyl politically will end this charade. All you need to know is that HFTs have marked up all stocks on no volume 400% more than they are worth and sleep well. 

YesWeKahn's picture

Credit will catch up eventually

YesWeKahn's picture

Credit will catch up eventually

DosZap's picture

We knew it was a matter of time before China started using their useless Treasuries to buy up REAL assets, our land.