Equities: The stock market is vulnerable to an increase in real rates as the S&P 500 – TIPS yield correlation moves further into negative territory.
Credit: Loan loss provisions among large US banks are below pre-crisis levels but are still high as a percent of total loans. This means banks have extra balance sheet capacity.
Rates: Rate implied volatility dropped sharply on Tuesday.
Eurozone: Dublin is the destination of choice for finance firms leaving the UK.
United States: Consumers continue to lose interest in borrowing.
Food For Thought: US cigarette sales stopped declining last year.
Edited by Devon Lall
Contact the Daily Shot Editor: Editor@DailyShotLetter.com