Headlines hotting up:
"The Market Is Broken" - Why Nobody Is Trading Any More
https://www.zerohedge.com/markets/market-broken-why-nobody-trading-any-more
.. "We were just trying on Monday to trim a long position in the 30-year
Treasury because it had moved so far in our favor, and were unable to get bids
from several major dealers. We’ve never seen that before."
.. "I’ve never seen that before, the inability to trade a U.S. Treasury."
.. "“We heard there were some issues in off-the-run Treasuries,” Treasury
Secretary Steven Mnuchin said on CNBC Friday morning. “We are working on
that"... but apparently not enough, and the result was the biggest VaR shock of
all time as risk parity funds launched a crushing deleveraging which has
crippled conventional correlations, and left traders speechless at the bid or
offerless Treasury markets.
...
Nomura: "The Market Has Only Just Begun Staring Into The Abyss"
https://www.zerohedge.com/markets/77-sigma-move-nomura-says-market-has-only-just-begun-staring-abyss
.. The plunge in US equities yesterday (12 March) pushed weekly returns
down to 7.7 standard deviations below the norm. In statistical science, the
odds of a greater-than seven-sigma event of this kind are astronomical to the
point of being comical (about one such event every 160 billion years).
Setting aside legitimate quibbles over the statistical significance of
this, we can say with confidence that we are witnessing a history-making market
disaster in real-time.
Looking back at the performance of the DJIA since 1900, market shocks have
exceeded the current rout in magnitude on only three occasions: in 1914 (when a
growing financial crisis caused trading in US equities to be halted), in 1929
(the historic market crash that led to the Great Depression), and in 1987 (the
Black Monday event).
US stock market sentiment has also seen a jarringly swift collapse, as
equity sentiment has now gone beyond the low point marked during the 2015
renminbi shock. In little more than the blink of an eye, the situation has come
to look like the 2008 Lehman Brothers crisis all over again.
...
