In similar fashion to the "Superposition principle," this process seems to be homogeneous and additive. The global tightening of financial conditions has indeed been induced by the Fed with its hiking process in conjunction with QT. After the explosion of the house of straw of the short-vol pigs, it seems to us that next on the line, given the intensity in fund outflows and pressure on some EM currencies will be some of the "usual suspects" such as Turkey, Argentina to name a few. QT to some extent is leading to the weaker leveraged hands being blown apart it seems. In our previous conversation we touched on the fact that for some macro tourists which had extended their stay in the carry trade that, the tourist trap was closing.
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