Axiom Valuation Solutions monitors credit market conditions as part of its fair value services for hedge funds and pension funds. Click on the graph titles below to download a PDF of our latest graphs on credit market conditions. To be notified by e-mail of updates to these graphs, please
click here.
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Credit still tight for weaker credits but spreads have not significantly changed for higher rated credits.
Credit spread widens for shorter dated securities as declines in shorter dated Treasury benchmark are not passed through to lower rated securities.
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Axiom's illiquidity index indicates that the lack of liquidity has become much more pronounced since September.
Lack of liquidity reflects the inability of market participants (hedge funds for example) to transact private securities. The TALF should change this condition but to date it does not appear to have changed the liquidity landscape. Yields should remain high by historical standards and fair values low as a consequence.
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Market forecasts of future interest rates embedded in the yield curves are way off the mark.
The outlook going forward is for higher rates, which implies an economic recovery.
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Excess real money growth reaches an all time high!
Excess growth in real M1 and M2 are a pre-condition to economic expansion. The charts indicate a general relationship between increases in excess real money growth and growth in real economic activity.
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