The two-year yield, now surging, is a leading indicator.
Bonds, junk bonds, spreads, commercial real estate, leveraged loans, over-leveraged companies… all get named as risks to the banks. This is why “gradual” tightening will continue for a long time.
Happily dreaming in La-la-land till the rude awakening.
Corporate America fears that a Trade War would hit supply chains in China.
Inflation day didn’t disappoint. “Underlying Inflation” hottest since July 2006.
Wolf Richter with Chris Martenson on Peak Prosperity’s Featured Voices.
Didn’t miss a beat.
“As all asset prices adjust to a new and maybe not-so-positive environment,” there’s “a risk that volatile and declining markets can lead to market panic.”
SOFR, so good?
“We are looking at all options.”