There are a lot of mixed messages in a market that has deteriorated very quickly. We take a look at the influencing factors, what is happening, and what could potentially be next.

Key Insights

• An off-putting half: Risk off, with a recalibration of expected losses.
• Subprime credit is deteriorating: Will there be contagion?
• RMBS: AAAs pricing like BBs
• CMBS: Steeper credit curve
• Rates: As expected, and they got a 75-bps hike at the July 27 meeting, but maybe more would have been better?
• ESG: A luxury in hard times or more important than ever?