Central Banks About To Get Harsh Lesson - The Summer Stock Markets are Expected to be “Interesting”
Credit Spreads Have Been Narrowing
Snippet from Pivotal Events May 14, 2015
- Note the seasonal reversal from a strong market last June.
- The worst was associated with panic selling of crude oil and weakness in other commodities.
- The narrowing in the spread from 213 bps to 176bps in March was a reaction to the panic.
- The next phase of narrowing has been seasonal and the 176 level has held five times.
- It seems likely that this year's seasonal turn will have profound implications.
