Eurofaultlines

Median US IG net leverage is just under 2.5x. For European corporates, IG net leverage was 1.8x at the end '15.

P/E multiples have gone up ytd due to EPS downgrades. P/E multiples are back to the top of their historical ranges

A big gap has opened between the US Economis Surprise index and the US equity market

HFs have covered their equity shorts and have moved outright long

QE encourages national treasuries to raise the maturity-at-issuance, elevating the amount of duration sold

CDX tranches equity correlation – market pricing of default risk vs systemic risk - has fallen to multi-year lows

the trend toward a more US-like funding model is clearly underway in Europe after an acceleration in 2009.

China cement production is spiking up like in the "good old days"

China power consumption yoy moving back up to growth rates last seen in 2014

China residential real estate investments

China has stabilized. Here are Komatsu excavators operating hours, y/y by region

Japanese investors can earn 80bps of fixed yield on their JPY by buying a 10-year $ bank bond on fully hedged basis

If Japanese investors want to buy corp bonds they are forced to look overseas as their corp bond market is too small

Nikkei estimates that the top-10 Japanese Life Insurance companies alone plan to buy $46.6bn of foreign bonds in the current fiscal year

70bn of the 200bn of italian NPL are held by Intesa and Unicredit

US high grade spreads versus yields

The bulk of GPIF-related reallocation appears to have already taken place

Steel, mining and retails/wholesale - these are the risky sectors in the Chinese corporate debt segment (source IMF)

Since 2014, EM countries have issued more than €65bn of EUR sovereign bonds encouraged by the Fed/ECB divergence

Corporate Hybrids SUB/SEN ratio 6 year highs as the ECB excludes sub debt from its purchase program