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The Brexit bank funding cost rocket has crashed landed already with CBA CDS down another -4% yesterday to 82bps and barely above where it started:
Our US proxy in Wells Fargo is similar but the European proxy in Credit Agricole has retraced less thus the Ponzi Index is still falling:
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US and EM high yield are also selling:
If Brexit is the beginning of worse then it sure ain’t being priced!
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.