Carry trades were unwound overnight as increasing risk aversion saw low yielders outperform high yielders across the board. Equities drifted lower in both Asia (Nikkei down 1.05%, HSI 1.35% lower) and Europe (down ½-1%) in line with the flight-to-quality bid, as credit concerns were once again in the spotlight with news that Citigroup is currently in talks to sell $12bn of loans at a loss to Apollo Management, Blackstone Group LP and TPG Inc LP, sparking fears that other leveraged loan players maybe suffering similar problems with their leveraged loan portfolios. In terms of data, the only release of note [...]
Risk appetite declines
April 10th, 2008 · No Comments
Tags: FOREX Market Commentary
Australia / New Zealand - The Central Bank Appearances
March 24th, 2008 · No Comments
Australia: There is a busy fortnight ahead for RBA Governor Stevens and his department, as they continue to react to changes in market and macro risk in this volatile environment. This Thursday includes a speech on “Recent Financial Developments’ to a Euromoney conference in Sydney, followed a couple of hours afterwards by the semi annual RBA semi annual Financial Stability Review.
The following week brings the RBA’s monthly rate decision on Tuesday (April 1) and Governor Stevens’ semi-annual appearance before the parliamentary economics committee on Friday (April 4). The FSR is important in light of the RBA observations about the recent tightening [...]
