JohannesBorgen Profile picture
Nov 5, 2020 9 tweets 3 min read Read on X
An update post lockdown. Unfortunately, we don't have Google mobility data post-Oct 30th (start date of the lockdown) yet, so let's look at how hospital data changed since then. Quick thread.
From worse to better, let's start with ICU. Incidence and non-parametric fit.

I certainly can't see any change. Image
Confirmed by the statistical analysis of "R" for ICU data which is still hovering around 1.2 Image
Hospital incidence now.

Same, conclusion: the curve looks the same. Image
Confirmed again by R estimate still around 1.2... BUT we can see a tiny little improvement in R. Image
Now if you remember the original thread, I found that cases and ICU/Hospitals were lagged vs. cases and also that any impact on mobility would need 8-14 days to show in hospital data. So we should see more effects of lockdown in cases. What do we have? This. Image
Ok, I realise it's not obvious, but the ugly exponential now looks slightly more like an ugly straight line. Not great, but is it better? R estimates for cases confirm it's better. Image
R is only slightly above 1 now.

BUT - and this is a BIG BUT (!) the drop in R is almost perfectly synchronized with school closures due to the school holidays.

So you have two ways of seeing this.
1) the lockdown is working and we just need to wait a bit to see the impact on hospital data

2) the schools closing drove R down... reopening it during the lockdown means the whole thing will fail.

For now, I can't tell from the data which is right. Maybe Google data will help

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More from @jeuasommenulle

May 23
Are you readyyyyy for LDI take 2?

Hear me out. Something’s brewing in the UK Gilt market.

#LettuceLiz Image
As the chart above shows, the cash swap spread has moved significantly & one-way recently.

Spread to swap is now 50bps.

But EU & UK insurers book their liabilities at NPV using swap curves, not UKT curves.

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Bloomberg has some nice charts on the tariffs’ impacts.

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Mar 5
A week ago the Swiss gvt bravely decided to leave the decision on UBS capital requirement to Parliament.

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First, a reminder: the SDP is not a fringe party, they’re #2 in the National council (41/200) & #3 in Council of States (9/46) & they’re also not particularly extreme (I mean, Swiss rarely are.)

But their proposals for UBS are a bit wild.

Let’s unpack.
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Ouch.

And having the biggest req on a non-risk adjusted basis is not exactly a very safe approach imho
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Mar 3
Tomorrow is the end of the grace period for fentanyl-related tariffs (Canada Mexico), China ones r supposed to start on March 12. Time to look at some numbers. So far Trump has enacted 10% “fentanyl” tariffs on Chinese goods, enacted and cancelled 25% on Columbia and threatened :
Canada, Mexico (25% goods + 10% Canadian energy), China (+10% addtl), 25% steel & aluminium worldwide, “fees” for Chinese ships/freight operators, “reciprocal tariffs” (whatever that means) for all nations + 25% autos pharma & lumber, + unknown % on copper.
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Some historical perspective: maybe raising tariffs in the early 1920 wasn’t a great idea? Image
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Feb 28
You should watch the full unedited version of this unreal press conference All going as expected (Trump w/ his weird obsessions, Z trying to stay cool, Rubio wishing he was in bed) until it totally blows up bc Z can't help correcting Vance about diplomacy

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You can't make it up
Also : the journalist who asked the suit question should really look at himself in the mirror tonight bc it clearly contributed to the unravelling of the meeting
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Jan 10
This is pure gold, Greek edition.
How did Eurobank achieve such an increase in capital ratios, in Q3 24? The trick is in the +99bps.
Which comes from a mysterious decrease of 2.4bn€ in RWA. But how? Deleveraging?
Oh no, that would be hard work. I’ve got a better idea.
Thread. Image
It’s obviously the ICAP CRIF CQS, you idiot. Err, what?
Here’s the explanation, & it’s beautiful.
Under Basel/EU rules, banks using the standard approach (no internal ratings) have capital charges (RWA) based on external ratings which are then mapped on so-called “Credit Quality Steps” that give RWA using this table. Image
Read 10 tweets

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