Josh Kilbourn: Global Systemic Risk Is Rising Rapidly Again

03 Economy, 08 Wild Cards, Commerce, Commercial Intelligence, Corruption
Josh Kilbourn

Global Systemic Risk Is Rising Rapidly Again

Submitted by Tyler Durden on

ZeroHedge, 04/11/2012 15:26 -0400

The risk of the 30 most systemically important financial institutions (SIFI) in the world has risen over 30% in the last three weeks as the effects of LTRO fade and encumbrance becomes the new reality.

This less-manipulated, government-bank-reacharound-driven bond-market sense of reality has retraced almost 40% of its improvement from its peak last November at 311bps to its best level mid-March at 171bps.

The current 226bps level is extremely elevated and as one would expect is dominated by European and US banks (with US banks on average trading wider than Europeans – which may surprise many but Europeans dominate the worst names – most specifically the Spanish banks).

Graphics Below the Line.

 

Source: Capital Context