The risk of the 30 most systemically important financial institutions (SIFI) in the world has risen over 30% in the last three weeks as the effects of LTRO fade and encumbrance becomes the new reality. This less-manipulated, government-bank-reacharound-driven bond-market sense of reality has retraced almost 40% of its improvement from its peak last November at 311bps to its best level mid-March at 171bps.
(Basis Point (BPS) Definition | Investopedia)
The current 226bps level is extremely elevated and as one would expect is dominated by European and US banks (with US banks on average trading wider than Europeans - which may surprise many but Europeans dominate the worst names - most specifically the Spanish banks).
I am wondering how The latest covert EU bailout through swaps by the US (without the consent of the citizens) will be affected by this latest news?
http://www.zerohedge.com/news/global-systemic-risk-rising-rapidly-again
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