There’s a groundswell under equities right now. Risk factors, like how much banks trust each other, are very low. And market sentiment is very high. Stocks are levitating toward new highs, and the story’s taking on a life of its own. Read More
Is China’s GDP the New Libor?
A further sign of lower systemic risk, five year credit default protection on the four biggest banks in France and Spain has dropped anywhere from 10-20bps over the last week. Socgen has improved by over 100bps the last two months. While economically sensitive names like Caterpillar CAT, AK Steel AKS, Advanced Micro Devices AMD, Yum Brands YUM have moved wider by 35-200 bps in the last 45 days. Read More