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!