Investment Grade Corporate Bond Sales Collapse in Eurozone; "Lack of Trust" Pummels Bank Lending

. As recently as February, financial CP rates were below the federal funds rate.

‘Scarce Liquidity’

Except for banks with little exposure to European sovereign risk, lenders “have found liquidity to be scarce, securing funding only one month and shorter and mostly concentrated inside one week,” Abate from Barclays wrote in the report.For data junkies, there are lots more details in the report. Certainly, the problems are not as severe as in 2008 but spreads are widening and corporate bond sales have collapsed. Those are not endemic of a recovery.

Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com
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Mike “Mish” Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
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