Tuesday, August 19, 2008

It;s Getting Dangerous Out There Again

Daily swings in the Dow not withstanding, a few indicators that are again showing credit market distress.

First, the ABX indices have been cliff diving again.

Here's but one of many AAA rated tranches:


FT.com also points out that Libor is back to two month highs:


The fear bid has made it's way back again, though on sluggish late August volume patterns.

We still see a larger than usual chance for market NYSE circuit breakers to be tripped sometime this fall where trading would be halted due to systemic failure risk. Enjoy the summer month "doldrums". Read the rest by subscribing. Click here, thanks!