Good title to a research note, as I tell my students in MSc in Finance, does the following things:
- Captures attention of the reader for the right reason
- Conveys enough information for the reader to continue reading, but not enough to end up with a feeling that all that needs to be known is already expressed in the title
- 'Sells' the story without over-exaggeration
- Commits the story to memory.
Today's 'good title' award is for the folks from Markit, for the note titled "Perfect Storm" - a simple, run of the mill account of the day when Asian CDS markets got bashed on China's end of things:
And while on China, excellent article in the FT today on Chinese steel giant Wisco: http://www.ft.com/intl/cms/s/0/fa98c4e2-d830-11e2-9495-00144feab7de.html
Read and weep... China has managed to perfectly waste a USD586 billion stimulus from 2008. That's a lot of burning of cash, if you ask me.
Here's mid-day CDS wideners by order of magnitude:
And here's yesterday's:
That's 40bps in two days. Whacking-cracking...
On June 6th, China's CDS were at 91.61 with CPD of 7.71%. Chinatastic...
And with that China is heading for a classic sugar crunch just as the punch run out. Over the last three weeks, China's interbank loans rates jumped from about 3% to over 7%, having hit last week 9.6%.
Someone, dial Bank of Japan, quickly!