JPM Looks At Draghi's "Package," Calls It "Solid," But Underwhelming
Earlier this month, JPMorgan’s Jan Loeys revealed that the bank is underweight equities “for the first time this cycle.”
Why? Well, allow Jan to explain it to you:
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Europe
The Narrative 'Fix' Is In - "Bold" Is The New "Buy"
Submitted by Ben Hunt via Salient Partners' Epsilon Theory blog,
With regard what's happening in Europe, we've seen this movie before.
Options Signal Short-Term Complacency, Medium-Term Terror
With one central bank meeting down, but two to go, VIX and VSTOXX (Europe's VIX equivalent) have plunged to 2016 lows discounting any 'events' upsetting the complacency anytime soon. However, as Goldman's options strategists note, the medium-term skew (3M to 1Y) are at or near record highs as traders prepare for turbulence amid 'Brexit', US elections, and of course the inevitable 'Fold or No Fold' Fed decisions later in the year.
The Shoe Keeps Dropping: CLOs With Negative Equity Soar By 30% In February To Record 453
One month ago, we noticed the latest "shoe to drop" in the global credit rout, when as a result of soaring downgrades to energy companies' credit ratings, the Collateralized Loan Obligations (CLO) market went into a state of frozen animation, leading to a standstill in new CLO issuance.
How To "Pre-Trade" FOMC Days
The biggest movers on FOMC days are the Dollar Index, Investment-grade credit, Homebuilders and Real Estate, according to Goldman Sachs' options strategists.