Over the weekend Bank of America’s volatility experts, Jason Galazidis and his team put out a report highlighting that US credit isn’t the only credit market where investors are remarkably complacent. The volatility team writes that both US credit & Chinese equity hedges "are pricing a world almost free of risk."
Investors Are Pricing In A World Almost Free Of Risk
Such a level of complacency is perplexing according to Galazidis as "there appears to be abundant potential sources of global market uncertainty: a CB policy miscalculation, the propensity for political surprises, unanticipated consequences of the first US rate hike cycle in over a decade and the feasibility of Trump’s economic growth agenda, to name a few."
However, the credit team also...
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