As vix Touches 50 long way from the 110 & 120 calls being in the money markets are taking the small steps back towards normal functionality.I like the volatility and chaos I like when markets are inefficient,oh well.Some metrics that indicate steps back towards normal markets:
First Cross currency basis swaps between JPY and USD the more negative the swap moves the more expensive it is to acquire dollars.This is is a smaller graph but you get the idea the swap spread is almost positive !indicating ample dollars available, whereas at the apex of Crisis the index was greater then -150 intra day.
This is the IBOXX Investment grade corp bond Index, a proxy for the IG corporate bond market.Quick eye ball test show this index has clawed back roughly half its losses
Now this one is a bit tougher for me to understand,but this is a Graph of the spread of 2 year cash notes linked to the futures complex and A cash bond that is not linked.It shows the strains or abnormalities in the Basis trade , spread spike out of its normal range but now has found it way back to pre crisis levels. this is from BBGlastly the Spread between 2 year Overnight interest rate swaps minus 2 year treasury yields the higher the spread the more worries about Financial stress in markets and concern about counter party lending risk This is another BBG spread that has returned to pre crisis levels.
