Credit Suisse's Pozsar Provides Some Support For EDZ1 Overnight

For anyone just logging in, we should flag that a note released by Credit Suisse's Zoltan Pozsar late in the NY day on Wednesday pointed to "a relatively muted year-end turn," based on his analysis of the quarterly earnings reports and conference calls from J.P.Morgan & Wells Fargo (and assumed lack of pressure on G-SIB scores). This could have been the trigger behind the EDZ1 buying and EDU1/Z1 spread selling we flagged around the CME re-open. EDZ1 leads the way in terms of volume of the Eurodollar strip, trading 2x as many as any other contract through the reds, with 19K lots trading hands thus far. The strip runs -0.5 to +0.5 through the reds.