Below is a chart and excerpt from today's Early Look written by Financials & Macro analyst Drago Malesevic.
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Regarding uncertainty and exponentiality, we can look to credit derivatives where they are on full display in both corporate and sovereign instruments, particularly in the case of Swiss bank Credit Suisse where the insurance premium for default on the bank's debt is clearly rocketing higher in a frantic attempt to deal with the epic rise is systemic risk and uncertainty. Needless to say, credit markets are not chasing highs like their equity market counterparts. |
