All the world’s money is contained in the link below! Before we get to that, a little context as to why we’ve chosen to share this today.
Over the last couple of weeks, we’ve noticed a large jump (globally) in Junk Bond Issuances at the same time High Yield Funds around the world are experiencing their worst outflows in years.
Coupled with Chinese 10 year bonds breaking through 4% today, for the first time since 2014, this is turning into a little more than noise.
To us, it’s this kind of activity that makes us sit up and take note. We’ve always contested that any financial “system” troubles would come from the same area as it did 2007/08 (high yielding debt), since nothings been fixed.
Even as central banks continue to assure us that everything is awesome, they still have both feet firmly planted down on the emergency money printing interest rate suppression pedal.
There was always going to be a large price to pay for distorting markets for so long, along the way forcing all and sundry into riskier assets in the hunt for MORE income.
The problem as we see it is, even a slight reversal will reveal very small exits for a lot of money looking for…….. COLLATERAL.
Hence, the time to share the “All the World’s Money” charts through the link below from the analysts at Visual Capitalist.
It’s truly revealing. Just think to yourself when you are viewing the chart below, “where is the collateral”!?!
In fact, there are so many stories to tell from the charts above that it’s hard to pick one.
If the sheer size of the derivative mountain doesn’t stand out then…move on, because you obviously know one of the smartest guys in the room that share the “it all nets out’ belief.
That’s all from us today as you should really take your time with the chart above!
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