Late Day Derisking As Sovereign Debt Crisis Is Becoming A Banking Crisis

The late day collapse in financials (thanks to Fitch's comments that seemed to wake up a stubbornly ignorant equity market to the reality that credit has been screaming for weeks) helped drag equities (and HY debt) significantly lower. Most notably, amid a much higher than average volume day today, the dislocations of the last few days - that we have highlighted - have converged very rapidly this afternoon. ES significantly underperformed a broad basket of risk assets (CONTEXT) into the

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