CQS' Hintze Notes Change In Price Spreads, Considers Fed Stimulus

Markets are being driven higher by “central bank liquidity,” also known as stimulus, according to Sir Michael Hintze of London-based CQS Investment Management. In a recent interview, Hintze addressed a number of economic issues while saying that recent market volatility is being exacerbated by declining market liquidity, which in part is due to regulation. Michael Hintze: Traders challenged by market volatility The market volatility has been challenging for traders, with “gaps” in price both up and down occurring across correlations. “Since mid-2014, a clear differentiation between more and less ‘risky’ assets has taken place and we have seen an uncoupling…