Saturday, 17 January 2015

#10 - Credit overdue

#10 - Credit Crisis

I find the current price of credit assets to be untenable.  The extent of recovery from the 2007/09 crisis is remarkable and although I understand the reasons why everyone is chasing yield, of course I think it will end in tears.

Call - Credit crisis
Prediction - Widening, increase in downgrades and defaults.  ITX Europe to widen above 100
Trade - Difficult to execute
Conviction - Medium
Feasibility - Low

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