Sunday, March 2, 2014

Crisis Gauge Rises to Record High as Swaps Avoided - Bloomberg

Crisis Gauge Rises to Record High as Swaps Avoided - Bloomberg: "China’s credit-market gauges are triggering alarm bells, as banks grow cautious in lending to each other while investors prefer the safest government bonds"

“What I do see are increasing parallels between China and the U.S. in the run-up to the global financial crisis,” said Patrick Perret-Green, a London-based strategist at Australia & New Zealand Banking Group Ltd. “Shibor-repo is similar to Libor-OIS. Shadow banking is subprime. Credit spreads are widening as they did in 2007. Money growth is softening as tightening bites.”

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