Market Stress Building at the Fastest Pace Since Lehman
- Culprit found in widening credit spreads, not bank liquidity
- ‘We’re pricing in global recession of magnitude’: BI’s Jersey
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Even before today, financial conditions were tightening at the fastest pace since the 2008 crisis.
Markets buffeted by coronavirus fears were thrown into tumult Monday by the potential of a full-blown oil-price war. The next pain point to watch is in credit, from frozen primary markets to potential blow-ups in leveraged companies. And it’s all happening so fast few can hazard a guess as to how it will play out.