Fear! Tariff Fears Are Spooking Markets (China Is Acting Childish)

#bubble, #inflation, Banking, China, CMBS, CRE, Cryptocurrencies, Currency, ECB, Economy, Existing Home Sales, Fed, GDP, Gold, Housing, Inflation, New Home Sales, Powell, Silver, Treasuries, Treasury, Uncategorized, Yellen, Yield Curve 1 Minute

Markets are ranked by fear about tariffs. Particularly since China is acting like a child.

Bond vs equity fear

Bond volatility has shot up higher, but remains “muted” compared to the VIX move.

Source: Refinitiv

FX vs equity fear

FX volatility has shot up higher as well, but is pale in comparison to the VIX move.

Source: Refinitiv

Credit “crunched”

Credit protection has surged during the “chaos”. Chart shows the US and the European versions.

Source: Refinitiv

Equity vs credit protection

VIX vs CDX IG.

Source: Refinitiv

Europe as well

V2X vs iTraxx main.

Source: Refinitiv

Correlation – the upside crash

Implied correlations showing a lot of “fear” as pretty much everything has been treated as if it were the “same” during the crash.

Source: Refinitiv

Massive

Intraday range was huge during yesterday’s session, but close to close very modest. Imagine trading short gamma….and hedging the extremes.

Source: GS

The Yuan is having a volatile day.

Fear!

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Published by confoundedinterest17

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