So people: hope you can read
. еба си маиката, и това е добре

- Leveraged loans gapped lower as well in what looked like indiscriminate selling. Once again there are rumors of total returns swap (TRS) margin calls (TRS is one of the techniques used to leverage loan portfolios).
- Even investment grade spreads widened sharply, with IG CDX now at 2013 levels.
- HY bonds gapped 2% lower on Friday (after being even lower intraday) with much of the volume concentrated in index trading. In fact HY ETFs saw the largest weekly volume on record.
- The spike in risk aversion was also evident in the equity vol markets as the VIX (implied vol index) curve went into backwardation (inverted).
- Crude oil implied vols shot up, though remain below the September highs
- US natural gas plummeted in Sunday night trading, dropping almost 4%.
- The Canadian dollar took a beating on this dislocation in the energy markets. It was trading at 1.37 to the dollar - the weakest in over a decade.
- A number of other commodities remain under pressure globally. iron ore futures on the Singapore Exchange dropped 2%
- EM equities underperformance worsened.
- The Russian ruble traded to RUB 70 to the dollar in response to the energy situation.
- The Mexican peso and the Colombian peso hit record lows.
- And then there is South Africa where the situation remains fluid. Bond yields and sovereign CDS spreads continued to move higher.
- Russel got beaten: Why have the smaller US firms underperformed so much? One explanation is that these firms are less prepared for rising rates in the United States. Small cap leverage is higher and interest coverage weaker.
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