Cheap Debt

• FX markets were tested by the financial crisis, and investors found deep liquidity to realize their macroeconomic views. 3.2T dollars traded daily; spots about 30%, swaps 50%, fowards the rest
• On a purchasing-power basis, the BRICs are a larger economy than Europe
• Highly rated US companies are stockpiling cash from heavy bond issuance, while junk grade are paying down debt