Nov 30. Since 2009

–Quiet session Friday, the largest feature was continued flattening in back month eurodollar spreads.  For example, the red/green pack spread edged to a new low of just 46.5, down 0.5 on the day.
–It is of course, a big week with Yellen speaking Wednesday to the Economics Club of Washington and again on Thursday to the Joint Economic Committee.  ECB meeting is also Thursday (as EUR presses to new lows this morning 105.75).  Payrolls on Friday.  Today is the Chicago PMI, expected 54.0 from 56.2.
–From this morning’s WSJ: “Emerging-market corporate-debt defaults reached their highest level since 2009, as economic conditions worsen for companies that spent years piling up their borrowings.”  Business Insider has a piece this morning saying that “Investors are terrified by the “third wave” of the financial crisis,” that being a toxic mix of low growth and high debt in emerging markets.  There are a lot of indicators that are as low or as high as they’ve been since 2009, around the nadir of the financial crisis.  For example, the flatness of the yield curve (red/gold or 2/10), the level of commodities (which are actually lower), and now emerging market defaults.  Good time for a hike…?

Posted on November 30, 2015 at 5:14 am by alexmanzara · Permalink
In: Eurodollar Options

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