The More Threatening, Under-priced Risks to Global Mkts

The Fed's rate hike has been pegged as one of the greatest risks to the future of the financial system - not that it is immediately a threat, but the uncertainty is brings is troubling. However, we have seen the market move to price the possibility of a December hike into the markets (here 2-year yields). In the meantime, the China economic-financial strain has seemingly dropped off the radars and Emerging Market capital reversal seems a fear of the past. These are currently the greater unknowns according to pricing.