Once again, credit markets have roared back to converge with equity's exuberance to close the day in line. Very soon after our earlier post [2] on the divergence, the two bipolar markets began to converge rapidly. Will tomorrow's 4th time be the charm, we wonder?
We do note that Subordinated financials are underperforming still and we hope the Main-Equity arb traders made out well today from our earlier note.
Charts: Bloomberg