CQS' Hintze Notes Change In Price Spreads, Considers Fed Stimulus

Markets are being driven higher by “central bank liquidity,” also known as stimulus, according to Sir Michael Hintze of London-based CQS Investment Management. In a recent interview, Hintze addressed a number of economic issues while saying that recent market volatility is being exacerbated by declining market liquidity, which in part is due to regulation.

Michael Hintze: Traders challenged by market volatility

The market volatility has been challenging for traders, with “gaps” in price both up and down occurring across correlations. “Since mid-2014, a clear differentiation between more and less ‘risky’ assets has taken place and we have seen an uncoupling both in credit and equity markets,” Hintze said in the CQS Insights publication sent to investors, a copy of...