Premium"The Weakest Borrowers Are Telling A Different Story": Morgan Stanley On Record CCC Stress And Oversold Banks
Another weekend, another "Global Reflections" from Morgan Stanley's Nick Savone (available to pro subs), and this week's ran to 44 pages, three more than last week's "Winter Is Coming" opus. Skip past the Singapore night race (the Savone family movie of the week is, naturally, Fast X), Miami's 41–13 demolition of Clemson, a "Go Bruins!" for undefeated UCLA, Italy's 3–1 win over Türkiye, and a Cowboys lament that deserves its own paragraph (more on that below), and what's left is one of the clearer maps yet of how far the market under the index has drifted from the index itself.
Savone opens with a saying everyone's grandmother knows: