Derivatives Markets: Inversion means trouble in US structured notes

The very unusual phenomenon of curve inversion has made a return to the US dollar swap market, and its re-appearance is causing quite a stir.

A version of this article first appeared in Total Derivatives.

Total Derivatives is the prime source of real-time news and analysis of the global fixed income derivatives markets.

Authors: Vincenzo.Pelosi@TotalDerivatives.com and Ronan.ONeill@TotalDerivatives.com It is not something that happens very often. In fact, on average, it has occurred less than one day per year over the last 15 years. But when it does happen – as it has since mid November –  it tends to raise eyebrows in the fixed income derivatives markets, and raise the anxiety levels of investors in structured products.

Treasury

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