Liquidity is starting to deteriorate, and a great insight into this is the Repo market. Failures to deliver (Bonds used as collateral in Repurchase agreements) have been elevated and are up 22% on a WoW basis. This is a sign of liquidity event brewing. pic.twitter.com/AkzKu9rnCU
— Deer Point Macro (@deerpointmacro) July 30, 2022
FRA-OIS spreads are being driven by bank credit risk within Europe. If banks credit situations continue to deteriorate we will see further upward pressure on FRA-OIS, and Euribor fixings should also start to reflect credit risk within EU Banks. Contagion seems to be on table. pic.twitter.com/9OZ39PTKWw
— Deer Point Macro (@deerpointmacro) July 29, 2022
Buy now default later in UK
Subprimes loans for consumers amid cost of living crisis pic.twitter.com/Y4CbxkGQ4O
— Alessio (@AlessioTMAD) July 31, 2022