James McKay

There is one rather concerning indicator - credit implied volatility is very notably elevated and is the clearest indication that the big professional money thinks a taper is coming and are aggressively hedged. With the massive overweight positions that are still in place (and that Bernanke tried to disinflate and failed), they know that any attempt to sell (which we saw in May and June) amid the illiquidity of our new normal market is impossible (and entirely self-defeating)


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