Authored by Kevin Muir via The Macro Tourist,
This morning I have decided to write about US swap spreads. I know, you are already reaching for the delete key, but wait…
I tried to remember a time when swap spreads were exciting. I dug back into my memory, and tried to recall something that might spice up this snoozer of a topic.
Having priced at the low-end ($10) of an almost unprecedented cut in IPO range, Blue Apron opened this morning at $10, traded up to $11 amid exuberance from Bob Pisani desperate to show how the great IPO market was back... but tumbled back to $10 by the close.
Worse still, having been defended twice, Blue Apron shares broke below the IPO price in the after-market, trading $9.95...
We wonder if Morgan Stanley will support this tomorrow...
As legendary market technician John Bollinger tweeted today...
"Another volatility event in the US stock market. At the lows S&P -1.4%, VIX +51.1%. This is going to get out of hand one day."
And quite an event it was... VIX spiked to 15.16 and liquidity collapsed before panic-vol-sellers struck again (as banks hit unchanged) slamming VIX back to an 11 handle by the close
While S&P 'VIX' was slammed, Nasdaq 'VIX' remained elevated...
Risk Parity funds getting hit as stocks and bonds are dumped...
The Institute of International Finance is perhaps best known for its periodic - and concerning - reports summarizing global leverage statistics, and its latest Q1 report was the most troubling yet, because what it found was that in a period of so-called "coordinated growth", global debt hit a new all time high of $217 trillion, or over 327% of global GDP, up $50 trillion over the past decade. So much for Ray Dalio's beautiful deleveraging, oh and for those economists who are still confused why r-star remains near 0%, the chart below has all the answers.