Credit market freeze deepens

Global interbank liqudity is tightening fast:

The Fed can’t print fast enough at its repo facility:

Junk spreads are rapidly overtaking the 2015 Mining GFC:

Investment grade is following:

And, locally, as well as the RMBS market being shut, big four CDS is on the march. Here’s Westpac versus VIX:

Now at 71bps. At around 120bps funding becomes uneconomic.

Remember that we are yet to even have a major bankruptcy!

David Llewellyn-Smith
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