This page has been archived and commenting is disabled.
European Credit Risk Surges Near 4-Month Highs
Just as we warned last night, the lack of an active European credit market to look over the shoulders of their more exuberant equity colleagues quickly came to bear today as London traders turned up for work in no mood for bullish hope. Investment grade credit spreads in Europe jumped their most in a month and pushed close to four-month wides as the entire credit complex sold off aggressively. It seemed Main (the European IG credit index) was instrument of choice for hedgers (cheaper and more liquid with a smattering of financials) as opposed to XOVER (the European HY credit index) but we suspect the latter will rapidly catch up. Stocks fell further with Greece hitting multi-decade lows but Italy and France underperforming (as reality bit following yesterday's pump). Euro Stoxx 50 was down around 2% (now -3.5% YTD) but Spain remains the YTD biggest loser -18.2% (as opposed to Germany's DAX +9.25%). Sovereign credit was also not happy (just like yesterday) but as US opened, Italy and Spain saw notable derisking pushing their 5Y spreads +7bps and +15bps respectively on the week now. Portugal is +24bps on the week so far as the basis trade unwind begins. Europe's VIX surged above 31% for the first time since the beginning of the year and while Treasuries were bid (with 30Y touching 3%), 10Y Bunds outperformed on the safety rotation now 28.5bps inside of the 10Y TSY. EURUSD slid back under 1.30 shortly after the US opened but some miraculous gappiness (and comments from Greece) dragged its lumbering body back over the 1.30 Maginot line for now.
Europe's Investment Grade credit index set the tone for the day with its biggest loss in a month and closing back over 150bps - its widest since mid January...
And European sovereigns lost it once the US opened for business...
As the broad Bloomberg Europe 500 Equity Index shifted down to 4-Month lows...
Charts: Bloomberg
»
- 6643 reads
- Printer-friendly version
- Send to friend
- advertisements -
OOGH!!
http://confoundedinterest.wordpress.com/2012/05/08/die-another-day-france-pretends-debt-doesnt-matter-greece-in-state-of-confusion/
I really want to see how Merkel is going to talk her way out of this one...
Spread data is nice, but % yield on these instruments would be nicer.
The German yields are sinking. That means the spreads could grow without any larger interest expense for the Eurotrash.
So regardless of looking sophisticated, it would be nice if these posts reported yields, as well as spreads.
See http://confoundedinterest.wordpress.com/2012/05/08/die-another-day-france-pretends-debt-doesnt-matter-greece-in-state-of-confusion/ for yields in Europe.
Even France saw an increase in sovereign yields at the 10 year. Greece/Portugal melting.
Gold and silver must be attacked since the Euro is not so safe anymore. The Bernank wants you in the safe as the Titanic US dollar despite what those cute bears tell you.
BTW, who killed off those cute bears who explained the silver manipulation?
This market is ridiculous. Everything calls for a healthy market clearing trend, but then The Great Oz in the Marriner Eccles building turns his big dial the other way. What a joke. Central banks buying equities and ETFs. A sad farce.
I don't want to bail them out again!
Hedge Funds Betting Against the Eurozone: Why You Should Worry
http://www.dailyfinance.com/2012/05/05/hedge-funds-betting-against-the-eurozone-why-you-should-worry/
John Paulson reaps billions from the financial crisis
http://www.bloggingstocks.com/2008/10/25/john-paulson-reaps-billions-from-the-financial-crisis/
Also,
The Truth Behind the Unemployment Numbers + Stimulus vs Austerity
Facebook Roadshow Presentation
S&P 500 timing system returns 289.81% over the past five years When to expect the next round of QECoach Factory Outlet Coach Outlet USA Coach Wallets Cheap Coach Purses Coach Outlet Coach Purses Outlet Coach Factory Outlet Online Coach Outlet Coach Store Outlet Coach Outlet Online Coach Outlet Coach Factory Online Coach Factory Store Coach Bags Nike Air Max
Our Coach Factory Outlet goal is to let everyone be able to buy the Coach Outlet USA for her own. Coach Wallets or Cheap Coach Purses in the cheap Coach Purses Outlet are available now with the best condition and Coach Outlet in the lowest price. Coach products from Coach Factory Outlet Online have classic design yet in top fashion sense. The artwork of Coach in the Coach Outlet is so delicate and distinctive, perfect in details. Coach Store Outlet is a great Coach Outlet Online store not only selling top Coach Bags but also other Coach accessories. Coach Outlet does not let you down on Coach quality, design and workmanship. Coach Factory Online also is a good place for you to enjoy Coach items. In this Coach Factory Store, you could get the best Coach Bags at the best price. So are other Coach accessories, like Coach shoes, Coach wallets or Coach jewelries. Of course, if you love other brand shoes, Nike Air Max is a top one for you! Welcome!
Coach Factory Outlet Coach Outlet USA Coach Wallets Cheap Coach Purses Coach Outlet Coach Purses Outlet Coach Factory Outlet Online Coach Outlet Coach Store Outlet Coach Outlet Online Coach Outlet Coach Factory Online Coach Factory Store Coach Bags Nike Air Max
Our Coach Factory Outlet goal is to let everyone be able to buy the Coach Outlet USA for her own. Coach Wallets or Cheap Coach Purses in the cheap Coach Purses Outlet are available now with the best condition and Coach Outlet in the lowest price. Coach products from Coach Factory Outlet Online have classic design yet in top fashion sense. The artwork of Coach in the Coach Outlet is so delicate and distinctive, perfect in details. Coach Store Outlet is a great Coach Outlet Online store not only selling top Coach Bags but also other Coach accessories. Coach Outlet does not let you down on Coach quality, design and workmanship. Coach Factory Online also is a good place for you to enjoy Coach items. In this Coach Factory Store, you could get the best Coach Bags at the best price. So are other Coach accessories, like Coach shoes, Coach wallets or Coach jewelries. Of course, if you love other brand shoes, Nike Air Max is a top one for you! Welcome!
Burberry Outlet
Burberry Sale
Burberry Outlet Online
Burberry Sale
Burberry Outlet Online
Burberry Outlet
Burberry Outlet Online
Burberry Outlet
Burberry Sale
Louis Vuitton Outlet
Michael Kors Outlet
Louis Vuitton Outlet
Michael Kors Outlet
Louis Vuitton Sale
Michael Kors Outlet Online
Louis Vuitton Sale
Michael Kors Outlet Store
All of these Burberry Outlet are 100% mirrored the genuine ones.Now, baggage out of Burberry Outlet go along with lizard, ostrich plus crocodile dermis sometimes during a reasonably Burberry Outlet priced amount. Dolce plus Gabbana fake purses and Burberry Outlet will be excellent to observe and get fine casino wars that is going to enable the particular owner without difficulty tackle all these purses and Burberry Sale in no time. A duplicated baggage out of Burberry Sale will be just what exactly would probably provide the timeless style and design if you wish so that you can clutch plus fantastic superb Burberry Sale . Many who seem to like great fretting Burberry Sale would love any fake travelling bag out of Burberry Outlet Online .Every details including material, hardware, lining, leather trimming, structure and chrominance are cautiously imitated based on the Burberry Outlet Online .There are various kinds of replica Burberry Outlet Online with diverse styles and colors Burberry Outlet Online in the market. Whatever kind Louis Vuitton Outlet you are looking for, you can certainly find Michael Kors Outlet that can perfectly fit you. Louis Vuitton Outlet are fast becoming popular because despite being stylish and made of quality materials, Michael Kors Outlet are affordable to a high percentage of middle income earners.