When we saw this chart on the 19th June…

Source: Zero Hedge

…our hearts sunk for a moment as we feared an event similar to 2008 with Lehman going under and repo/overnight rates globally spiking, thankfully the 19th the Chinese government has come out saying that they will provide liquidity to the market. But we definitely aren’t sleeping better @ night with rates raising, impacting government cost of funds in Europe and the carry-trade unwinding from Emerging Markets. I can honestly say we are happy with the falling markets as we can cherry pick into new holdings however we are closely monitoring the VIX, CDS Spreads, repo rates, amongst others (lessons learnt from ’08).