Credit market risks appear systemic, Lawrence Lepard notes - Traders Union
Credit market risks appear systemic, Lawrence Lepard notes - Traders Union
Source: Traders Union
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DW NOTE
Lepard flags credit risk as systemic — fair enough, but the trigger isn't structural, it's the Strait. Energy importers are rolling $104 oil into every forward contract while the Fed holds rates at restrictive levels. When your input costs jump 60% year-over-year and your funding costs haven't budged, something in the credit stack breaks. The systemic part is that central banks are still pretending this is a monetary problem.