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by Tyler Durden
Sunday, Jul 25, 2021 - 07:00 PM
Two weeks ago, on July 8 we summarized what Wall Street thought were the main reasons behind the sudden volatility observed in 10Y yields, when over the span of a few weeks, benchmark Treasury rates plunged from 1.70% to 1.30%, covering everything from fundamentals worries to technical positioning. However considering that just as volatile moves observed since then.
. one wonders if there isn t a more basic, if ominous, reason behind the roller coaster observed in what once was the world s deepest and most liquid market:
lack of liquidity.
That s the conclusion reached by JPMorgan quant Nick Panigirtzoglou, who writes that given the recent market moves, particularly in bond markets, it has raised the question of whether liquidity conditions have played an amplifying role. Reminding readers of the violent moves in rates earlier in the year, when following the catastrophic February 7Y auction the bond market suffered a historic brea
by Tyler Durden
Wednesday, May 19, 2021 - 10:16 AM
We were amused (and noted as much) yesterday when we read that according to the latest BofA Fund Manager Survey, Wall Street professionals were convinced that long bitcoin was the most crowded trade in May.
As we explained, the simple reason why this is impossible is that most Wall Street institutions simply can not participate in bitcoin as a result of the asset class structural limitations (no ETFs, limited Trust exposure, modest open interest in futures, etc).
Overnight, JPMorgan listed another reason why bitcoin is definitely not the most crowded trade: namely because over the past two quarters, institutional investors appear to be shifting away from bitcoin and back into traditional gold, reversing the trend of the previous two quarters.
by Tyler Durden
Sunday, May 09, 2021 - 04:13 PM
A little over a month ago, at the end of March, we first pointed out something troubling for the bulls: after leading the market in terms of both sentiment and volume, retail participation had collapsed. This was most obvious when looking at OCC option data, where SpotGamma noted a sense of decay or attrition happening on the call side.
Bloomberg also picked up on this, warning of call fatigue as call option volumes - the preferred investment instrument of millions of GenZ and Millennial traders - had fallen off a cliff.
Now, it s JPMorgan s turn to report what our readers knew almost two months ago, namely that the latest data reveals that US retail investors share in