The surge in credit risk across the global financial system is starting to get to the point where even Bill Miller will be forced to pay attention. With every central banker "all-in" with "whatever it takes" or "no limits" monetary policy, the fact that US, European, Chinese, Japanese, and Middle-East banks are all seeing credit risk spike should be a major concern to all…
European bank risk is at its highest since 2013…
Which is dragging the cost of funding for investment grade European corporates to their highest since 2013…
Led by a collapse in Deutsche Bank (which has the largest derivative exposure in the world)
Middle-East banks are blowing out to record high credit risk…
China banks are in trouble…
Japanese banks are collapsing…
As Raoul Pal exclaimed yesterday on CNBC when asked if there was a contagious threat to US banks from the rest of the world (paraphrased by us) "of course there [bloody] is… the tri-party repo system will spread this worldwide."
And indeed it is…
via Zero Hedge http://ift.tt/1R2dp6x Tyler Durden