BBSP Weekly Macro - Markets Correct as Expected

Economist (US Macro), RDQ Economics

Conrad DeQuadros

Economist (US Macro)

RDQ Economics

RDQ Economics provides global macroeconomic consulting services with an emphasis on U.S. economic fundamentals and monetary policy.  
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Our views are driven by consistent application of classical economic and monetary principles and has generated superior anticipation of changes in the stance of monetary policy and of movements in economic growth and inflation.
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The founders of RDQ Economics—John Ryding and Conrad DeQuadros—worked together on Wall Street for a decade, in the independent research space for nine years, and have experience in central banking at the Federal Reserve and the Bank of England.  John and Conrad have worked closely with fixed income, foreign exchange, and equity traders and portfolio managers, which has enabled their analysis and advice to be tailored to a clientele that is focused on trading and investment decisions.

Credit

In June, serial-defaulter Argentina issued 100-year U.S. dollar sovereign debt that yielded only 220 bps above a 100-year Mexico U.S. dollar bond rated nine tiers higher.  The Argentina offering was 3½-times oversubscribed and we viewed this as a sign of investor caution being thrown to the wind.  Last week, Greece returned to the market with a €3 billion issue of five-year debt yielding 4.5% that was twice oversubscribed (though about half of the buyers were swapping their existing debt…

In June, serial-defaulter Argentina issued 100-year U.S. dollar sovereign debt that yielded only 220 bps above a 100-year Mexico U.S. dollar bond rated nine tiers higher.  The Argentina offering was 3½-times oversubscribed and we viewed this as a sign of investor caution being thrown to the wind.  Last week, Greece returned to the market with a €3 billion issue of five-year debt yielding 4.5% that was twice oversubscribed (though about half of the buyers were swapping their existing debt…

S&P 500 INDEX

Signs of Excessive Risk Taking