Do you remember the end of May?
Everything was pointing to the great reflation trade: commodities were soaring, stock markets sprang higher and real estate showed some signs of life. Commercial Mortgage Backed Securities (CMBS) and Assed Backed Securities (ABS) rallied.
But this blossoming has gone in the mean time and we’re back to square one.
Everything was pointing to the great reflation trade: commodities were soaring, stock markets sprang higher and real estate showed some signs of life. Commercial Mortgage Backed Securities (CMBS) and Assed Backed Securities (ABS) rallied.
But this blossoming has gone in the mean time and we’re back to square one.
For a moment we thought we could defy the laws of supply and demand, but the truth is already setting in: we can’t. Supply is too massive and demand too tepid to see a sustainable price recovery.
Weak bank assets gave us a weakening consumer leading us to even weaker assets. Consumers and real estate have still more way to go on the path of deleveraging.
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Weak bank assets gave us a weakening consumer leading us to even weaker assets. Consumers and real estate have still more way to go on the path of deleveraging.
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