Meanwhile in London Izabella Kaminska Looks On the Bright Side With Zoltan Pozar

I just got to FT Alphaville's experimental Markets Live and, uh, Yikes!

FTAV Markets Live
Worth reminding people about some points from Zoltan Pozsar’s latest note on the funding repercussions.
120 views Izabella Kaminska, 01:59

FTAV Markets Live
The first impact is positive
120 views Izabella Kaminska, 01:59

FTAV Markets Live

The initial positive funding impact comes from three sources: (1) Less demand for commodity finance, as commodities are not in demand and don’t need to be mined and moved around (less demand for oil, coal and copper). (2) Less demand for trade finance as factories remain shut across China and there is no demand for intermediate goods (see our latest Global Cycle Notes here). (3) Less demand for shipping finance as new commodities and intermediate goods are not being sourced and because final goods are not being shipped.

151 views Izabella Kaminska, 02:00

FTAV Markets Live

When demand for trade and other financing falls, banks’ funding needs naturally fall too, and as some funding that banks already raised to pre-fund customers’ anticipated funding needs go unused, banks’ liquidity portfolios get a temporary boost as well, which amplifies the initial positive funding impact. But this positive funding impulse is only temporary, and we are probably nearing the end of the initial grace period for global dollar funding.

And that's the good news.
Earlier in the Telegram feed:

FTAV Markets Live
We are just noting on the team chat that the index numbers are really unreliable
119 views01:49

FTAV Markets Live
Possibly because there is no bid

And much, much, much MORE