Are we amidst many crisis now AND More....

1. London Metal exchange has recently imposed strict bans on Russian metals (specially Aluminum), and this led to the steep rise in the Nickel and Alum prices. The market is wondering how these bans can potentially be an outlier case for the fair value pricing. This comes when Europe has already banned oil and coal from Russia.

2. The recent budgetary decisions have led to a bloodbath in the UK stock and bond market. Pension funds who hedge using derivatives are shedding their stock and bond positions to meet the margin calls. This is leading to panic selling.

3. The Bank of England is absorbing the majority of all the selling in gilt, but buying at this scale also implies pumping in money at a time when the inflation is overshooting sustainable levels. We could see interesting moves in the swap spread market as well, where the short end was still positive but the longer end went negative after decades.

4. US recession has a terrible impact on the EM markets too, since it increases hard currency debt default probab, leads to capital movement back to US, and pushes them to follow rate hike path even though it may hurt their economies more than it does for US hence jeopardizing their economic stability and price trajectory.

5. Point in case: India- US vs India 10 year Gsec is now trading 14 year low of 3.3 bps, which implies that if Indian yields don’t keep pace, FPIs will offload their Indian holdings. With forex cover of imports falling to nine months. US real yields are close to 60-year lows.

6. Credit Suisse CDS soared to levels last seen in the 2008 crisis. Credit Suisse’s five-year CDS soared by more than 100 basis points. The credit curve inverted, and this happens when the investors rush to buy insurance.

7. Amid the booming real estate market, the Chinese government turned its focus in recent years to limiting financial risk in the sector by imposing strict regulations for developer borrowing, Real Estate sector accounts for around 30% of China's GDP. A potential property downturn presents a major headwind to China's economy.

8. Interesting Charts: