Credit markets read regime stress before equities do. The OAS print, the CDS basis, the IG-vs-HY rotation — the terms that explain why credit spreads are the macro signal worth watching.
The Banking Union is the EU framework for centralised bank oversight, resting on three pillars: single supervision (the SSM), common resolution (the SRM), and a still-unbuilt European Deposit Insurance Scheme (EDIS) that would mutualise deposit guarantees across member states rather than leaving them to national funds.
A credit-cycle melt-up is a self-reinforcing risk-asset and credit-expansion phase driven by passive monetary easing: a central bank that holds nominal rates steady while inflation expectations drift higher is cutting real rates by inaction, loosening financial conditions and feeding leverage, spreads, and asset prices.
Cross-collateralising, used figuratively in markets, describes a single thesis or asset pool being pledged to support multiple valuations at once, so that the same narrative or capital underwrites several positions. Strictly, it is a lending structure where one collateral package secures multiple loans or exposures simultaneously.
EDIS, the European Deposit Insurance Scheme, is the proposed third pillar of Europe's Banking Union: a common eurozone backstop that would pool national deposit-guarantee funds to insure bank deposits up to €100,000 regardless of which member state a depositor's bank is domiciled in.
A national-accounts framework that tracks financial flows and balance-sheet stocks across the major sectors of an economy — households, non-financial corporates, government, financial institutions, and the rest of the world — reconciling each sector's saving, borrowing, and net acquisition of financial assets into a closed, internally consistent matrix.
Global systemically important banks — the largest, most interconnected lenders whose failure would threaten the wider financial system. Designated annually by the Financial Stability Board using a five-factor scoring methodology, GSIBs face higher capital surcharges, tougher supervision, and resolution-planning requirements proportional to their systemic footprint.