By former FX trader and current Bloomberg commentator Richard Breslow
The Evil One
An enduring curse of this financial crisis is the inability of markets to disengage from the clutches of the correlation of one. We see it ad seriatim, often day to day: everything is wonderful, all hail the central bank (Friday); the world is crashing, these empty suits are running us over the cliff (Tuesday).
Back in April 2013, we showed for the first time something few were aware of, namely that "At $72.8 Trillion, The Bank With The Biggest Derivative Exposure In The World" was not JPMorgan as some had expected, but Germany's banking behemoth, Deutsche bank.
Submitted by Leonard Brecken via OilPrice.com,
As a small business owner I know all too well of the struggles to manage overhead as we all struggle through sky rocketing health care costs and taxes and inability to raise prices due to economic conditions.
Whether one is managing a small business or managing wealth, the top priority should be preserving cash to ride out the current storm. Instead of becoming more levered to debt, businesses try to de-lever and manage operations on a free cash flow (FCF) basis.
The surge in credit risk across the global financial system is starting to get to the point where even Bill Miller will be forced to pay attention. With every central banker "all-in" with "whatever it takes" or "no limits" monetary policy, the fact that US, European, Chinese, Japanese, and Middle-East banks are all seeing credit risk spike should be a major concern to all...
European bank risk is at its highest since 2013...
After initial weakness, crude prices have rallied since last night's across the board inventory build reported by API (especially gasoline). Against headline expectations of a 3.8mm build, DOE reported a huge 7.8mm rise with Gasoline also surging 5.9mm barrels. The overnight ramp gains on OPEC rumors have been erased and WTI is back below $30.
API reported: