Brief, yet interesting chart here from SocGen, courtesy of FT Alphaville. What stands out to me is how few options currently have a low hurdle and nearly all options that offer even a sentiment change hold a high hurdle. While markets celebrate Spain’s continued ability to access bond markets, though at unsustainable levels (since Spanish growth shows no signs of turning), Germany’s economy is slowing more rapidly. With Europe almost certainly in a recession, the ESM still awaiting ratification and further actions not forthcoming, the current optimism will once again prove misplaced.
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