Derisking

RBC: "We Are Seeing A Complete Breakdown In The Model"

"...the current (ongoing) breakdown in the USD is representative / driving some short-term and nascent deleveraging of legacy ‘reflation’ trades as per the sudden-death of the central bank "policy divergence" story last week - which had been the primary Dollar bull-case driver over the past year..."

Deutsche Warns Global Economy About To Roll Over, Says "Sell"

"Global macro surprises have only been higher 5% of the time, typically roll over from these elevated levels and have shown first signs of softening. We believe global macro momentum is likely to roll over from current elevated levels. Lower macro surprises would be consistent with a tactical pull-back for equities."

VIX Jumps, Stocks Dump As Trump Fails To Discuss Stimulus

Drug stocks, Boeing, Lockheed, and automakers under pressure but the whole market appears to be derisking as Donald Trump's press conference which so far has not had any discussion of a border tax, a stimulus, or anything else dollar positive which risk bulls had expected.

Contagion Concerns Slam Japanese Financials As Toshiba Crashes 50% In 3 Days

After two days of total carnage in Toshiba stocks, bonds, and credit risk, the bloodbath continues with the once-massive Japanese company is collapsing once again in early trading - now down 50% in 3 days. Following the semiconductor and nuclear business catastrophes, the company had nothing to add regarding today's crash but more worryingly the massive loss of market cap is spreading contagiously to Japanese financials with Sumi down 4%, and MUFG down almost 3%.

Deutsche Bank Tells Investors Not To Worry About Its €46 Trillion In Derivatives

"The 46 trillion euros figure sounds gigantic, but it is completely misleading. The real risk is far lower" Deutsche Bank's Chief Risk Officer Stewart Lewis told Welt am Sonntag. There is just one problem with this statement: Lewis made an almost identical promise that "Deutsche Bank is fine" two months ago. As it turned out, it wasn't.

Bond Risk Crashes To 2-Year Lows As VIX Shorts Fold

After 10 straight weeks of increasingly bullish speculative positioning ('longer' stock futures and 'shorter' VIX futures), the last 2 weeks have seen short VIX bets plunge at the fastest rate since pre-Brexit and the Aug 2015 crash. At the same time as this surge to hedging, the day since The Fed's utterly farcical fold have seen bond volatility crash to its lowest in two years.