Dissecting the intersection of
Economics, Geopolitics & Financial Markets
Geopolitics is a differentiator for markets, as CDS spreads vs. ratings show. MidEast spreads are clearly wide of “fair value” at the moment. Same for Colombia (upcoming elections) and China (cross-read from ME conflict?). Note, on the other hand, how well the Eurozone periphery is doing, with markets pricing in ratings upgrades in Italy & Greece..
