The global credit crunch is worsening by the minute. Global interbank rates are ripping:
European bank equity is disappearing:
GSIBs have been crushed:
High yield markets are blasting towards 2015 mining GFC peaks:
Led by energy:
Worryingly, investment grade is just as bad:
Locally, Aussie banks have lost access to term funding:
In reality, term debt markets are already shut. We’re just waiting for yields to catch up.
A CDS price of 120bps is roughly the point of insolvency for five year issuance. We’ll likely reach that today.