ROADMAP
With $492 Trillion outstanding in the notional value of global Interest Rate Swaps it is reasonable to conclude that, since one party on either side of these counterparty trades WILL GET HURT when rates rise, there is going to be a lot of hurting in a total global economy of only $45 Trillion.
All indications are that by 2012 the global economy is going to run headlong into a funding wall.
Markets always anticipate events at least 6 months in advance. This wall is so huge I doubt the market will wait. It will likely begin adjusting 12- 14 months ahead!
All bets are off if we get another sovereign or possible American State government surprise. This would move our Maturity Wall even ‘closer in’.