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It's Ugly Today Everyone

Posted on 6/24/13 at 9:15 am
Posted by BennyAndTheInkJets
Middle of a layover
Member since Nov 2010
5607 posts
Posted on 6/24/13 at 9:15 am
Can't get too into it but dealers aren't really wanting to make markets, players are on the sidelines, retail is pulling, passive funds are getting outflows and are forced sellers into this volatility. The sell-off is very exacerbated from unwinding of carry trades, risk parity funds having to sell to stay within their volatility targets, and passive funds getting outflows and naturally being forced sellers.

These rate levels can help some of those that were hurt by low rates (mortgage originators, commercial banks), but its a moot point until volatility slows down. Hopefully this is just taking care of the outflows from last week, we need this volatility to stabilize.
Posted by Coeur du Tigre
It was just outside of Barstow...
Member since Nov 2008
1505 posts
Posted on 6/24/13 at 11:13 am to
quote:

These rate levels can help some of those that were hurt by low rates (mortgage originators, commercial banks)...

By 'rate levels', do you mean yield? Thanks.
Posted by ZereauxSum
Lot 23E
Member since Nov 2008
10176 posts
Posted on 6/24/13 at 11:13 am to
I've turned off the ticker on my phone. I can't even watch :vomit:

What's your gut on where we are headed over the next 3-6 months?

ETA: Wealth Mgmt at the bank I work at seems to be pretty pessimistic. The lenders are happy to see higher rates on the horizon though.
This post was edited on 6/24/13 at 11:18 am
Posted by Blakely Bimbo
Member since Dec 2010
1183 posts
Posted on 6/25/13 at 9:36 am to
The action in TIPS is screaming D E F L A T I O N.

Ugly chart.

The 2007-08 debacle took about 18 months. Are we in for another round? Who the heck knows. One just has to pay a whole lot of attention like minute by minute until we will get a clearer picture.

The credit markets are telling me that this is not a buy and hold opportunity.
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