Market Conditions

In recent times, most notably since the start of the war in wkrine, we have seen marke conditions inching up into positive territory. Tight mark conditions were most visible in the trary market, with values approaching the level seen during the globa financial crisis. We consider two broad categories of bariables that may be potentially indicators that may signal fragilities. Broadly speaking, one captures investors over extension and reperceptions, and the other reflects more structural features of markets such as a intermediaries, market making capacity and funding liquidty conditions.