Agree again but in the major sell offs people seems to jump into
gold just to get burned when all margin calls forces funds and
people to also sell gold.
Another big theme is that funds are starting to buy corporate
bonds instead/or as a supplement to sovereign bonds. That was
unthinkable just a few years ago. The default risk on, for example
Russia is 17% coming 5 years. The same risk for Microsoft in the
CDS market is 4,3%. That's lower than US with 4,5% probability
right now. China has 12% probability.
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Seems also being a trend from sovereign bonds to corp bonds
$SSEC -- new multi-year lows..... again
Posted by lebow on 22nd of Dec 2011 at 02:40 pm
Agree again but in the major sell offs people seems to jump into gold just to get burned when all margin calls forces funds and people to also sell gold.
Another big theme is that funds are starting to buy corporate bonds instead/or as a supplement to sovereign bonds. That was unthinkable just a few years ago. The default risk on, for example Russia is 17% coming 5 years. The same risk for Microsoft in the CDS market is 4,3%. That's lower than US with 4,5% probability right now. China has 12% probability.