BAML: Excess Demand For Risk

With an excess demand for risk in the air and stocks continuing to climb a Brexit wall of worry higher, Bank of America Merrill Lynch (in a note titled “Excess demand for risk”) has a relative value trade it thinks institutional investors should consider. Significant credit / equity spread dispersion as panic is subsiding Fear, even if it is manufactured, is a valuable indicator in trading. When one can identify the establishment meme that ignores key facts on the other side and recognize that two-sided discussion was muted, for some this is a trade trigger alert. BAML’s Hans Mikkelsen might…