Part 2: Swaps Spreads: They Are More Important Than You Think
Is the Market “Sensing” a Financial Crisis is Coming?
Audio
It is very rare for all markets to trade with a high degree of correlation to a slumping S&P 500. When it happens, it puts the financial system under stress as the assumption that diversification decreases risk no longer applies. If it continues long enough, it could lead to a financial crisis like we saw in 1998.
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Commentaries — August 7, 2002
Part 2: Swaps Spreads: They Are More Important Than You Think Is the Market “Sensing” a Financial Crisis is Coming? Audio It is very rare for all markets to trade with a high degree of correlation to a slumping S&P 500. When it happens, it puts the financial system under stress as the assumption that… Continue reading Untitled