Saba Capital’s Boaz Weinstein Predicts Credit Chaos Around U.S. Election (Bloomberg) Never in his 22-year career has Boaz Weinstein seen such a disconnect between the complacency of credit investors and the anxiety of equity investors, and he predicts it could unravel in an “incredible move” around the Nov. 3 U.S. election. While the stock market is pricing in turmoil with the CBOE Volatility Index close to 30, corporate bond spreads have almost recovered to pre-pandemic levels. To Weinstein, the founder of Saba Capital Management and one of the biggest winners in the pandemic selloff in March, something has to give.
WTF is credit chaos? Bond sell-off, stock market sell-off? What (I did not read the article when I see a Bloomberg excerpt like this.) does that actually translate from Bloomberg/news/talking heads speak.
VIX is a function of put buying. Let them buy all they want. According to all 'projections' the equity markets should have tanked some time ago. There is no massive sell-off yet, no massive covering as well. Looks like anxiety of fund managers more than anything else.