After the fall of equities, corporate credit and base metals, will carry trades ever sink?

Posted on 17. Aug, 2011 by Steve Ohana in Weekly Focus

Last week, we reviewed the survivors of a deadly week for risky assets: carry trades, emerging bonds, corporate credit, with a bunch of equities and commodities were the last to stay afloat after the worst week the markets had experienced since 2009. Today, we inspect last week’s survivors, reaching the following conclusions:

Some emblematic equities have [...]

Review of the troops after the storm: have cyclical assets capitulated yet?

Posted on 09. Aug, 2011 by Steve Ohana in Weekly Focus

The long haven/short cyclical assets stance gained more clarity last week after the rally of OECD countries’ bonds and the slump of European equities. However, it is too early to declare the victory of the haven assets over the cyclical assets army. Indeed, although the recent storm has claimed new important victims among cyclical assets, [...]

Three reasons to worry about the short-term financial outlook

Posted on 05. Aug, 2011 by Jean Jacques Ohana in Weekly Focus

The financial system faces the threat of an imminent breakdown. As usual, the PIIGS’ sovereign debt and the euro zone banks are at the heart of the storm. The recent statement of the German Finance Minister rejecting a “carte blanche for the widespread purchases of sovereign bonds by the EFSF on the secondary market” [...]