This chart is destroying thousands of jobs in the financial sector.
Over the last couple of weeks UBS, Morgan Stanley, JP Morgan, and the Royal Bank of Scotland have all announced swingeing job cuts. As the Economist reported this week, the people most at risk of taking the long walk to the front door are those working in investment banks, and especially those working in fixed-income.
As the chart suggests, several important securitisation markets are now closed. Since last summer, residential and commercial mortgage backed securities volumes have fallen off the proverbial cliff.
These securities, especially the sub prime MBS, that were behind the huge losses recently suffered by virtually all major investment banks. It doesn't help your job prospects to be working on a product that loses huge amounts of money for your employer.