I agree with this, surplus countries are repatriating. I had also been a big bull of DM banks due to yield curve steepening, but I am now worried that DM Sovereign yield levels are getting near a point where they start creating credit events in the private sector. This could be completely wrong and the bank charts suggest this view is wrong. But it seems like a potential collision ahead.
I agree with this, surplus countries are repatriating. I had also been a big bull of DM banks due to yield curve steepening, but I am now worried that DM Sovereign yield levels are getting near a point where they start creating credit events in the private sector. This could be completely wrong and the bank charts suggest this view is wrong. But it seems like a potential collision ahead.
I think you see that fears of credit cycle playing out in the Russell 2000 - which has done nothing for 5 years....