Welcome to Funky Town!

Correlations across rates, equities, credit and oil are breaking down simultaneously, and hyperscaler AI capex ($3.3T) is masking underlying economic weakness.

• Correlation regimes shifted: Stock-bond correlation flipped positive (a "zombie return of risk parity") for the first time in years, hurting levered fixed-income relative value pod shops while unlevered investors were unaffected.
• Long-end yields hit price discovery: The 30-year blew through 5% with payer swaptions expensive and few sellers; Benny keeps his bond-bull call despite the move.

Themes, sentiment and reasons are AI-written paraphrases, checked so they never quote an episode. They may contain errors. Not investment advice. Episodes remain the property of their creators.