Entitites that use oil in their portfolios - as collateral forex. Plus ext
extraction industry.
Plus, this signals the magnitude of ww demand destruction. (Eg macro economic activity)
To go a bit further on collateral...imagine a company that has leveraged itself. Given the current chaos in financial markets, holder(s) of said paper challenge value of collateral...ooops.
Ofc, if the CBs backstop any/all loses, cover margin calls, that'll work until it suddenly doesnt [Post edited by ColoVT82 at 04/20/2020 08:34AM]
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In response to this post by vt_mughal)
Posted: 04/20/2020 at 08:28AM