GLOBAL SWIFT BANKING SYSTEM STATISTICS SUGGESTS US$ LIKELY TO SOON RALLY The U.S. accounts for less than 25% of the global economy and that number will be in steady decline amid the rapid growth of China and India. And yet the dollar still takes up almost 63% of global FX reserves. That mismatch will gradually […]
INCREASINGLY MARKET OUTFLOWS ARE HEADED TOWARDS PRECIOUS METALS While investors fled equities (see MATASII post here & here), they rushed into “risk off” safe havens, with $1.5bn inflows to gold, $1.8bn into bonds. Of note, with equity investors suddenly getting cold feet, gold is reemerging as one of the favorite asset classes.
HYG, JNK, TNX, TRIGGER$ April 2018, vix
CRACKS IN CREDIT MORE PRONOUNCED SINCE FEBRUARY VIX IMPLOSION — ABSTRACTED FROM: 03-23-18 ZeroHedge – “Retail Whiplashed By 2nd Largest ETF Outflow On Record; Longest HY Outflows Since 2007” — According to the fund flow data, it’s time to worry about credit and especially high yield, because as BofA’s Michael Hartnett writes, “credit is cracking” after […]
HYG, JNK, TNX, TRIGGER$ April 2018, vix
CRACKS IN CREDIT MORE PRONOUNCED SINCE FEBRUARY VIX IMPLOSION — ABSTRACTED FROM: 03-23-18 ZeroHedge – “Retail Whiplashed By 2nd Largest ETF Outflow On Record; Longest HY Outflows Since 2007” — According to the fund flow data, it’s time to worry about credit and especially high yield, because as BofA’s Michael Hartnett writes, “credit is cracking” after […]
EVEN INVESTMENT GRADE “BBB” BONDS BECOMING A MAJOR MARKET CONCERN By bulking up on debt, U.S. companies have added a new uncertainly into financial markets — SOURCE: 04-01-18 WSJ – “The Danger Lurking in a Safe Corner of the Bond Market” — U.S. companies have been bulking up on debt, introducing another wild card into […]
EVEN INVESTMENT GRADE “BBB” BONDS BECOMING A MAJOR MARKET CONCERN By bulking up on debt, U.S. companies have added a new uncertainly into financial markets — SOURCE: 04-01-18 WSJ – “The Danger Lurking in a Safe Corner of the Bond Market” — U.S. companies have been bulking up on debt, introducing another wild card into […]
HYG, JNK, TNX, TRIGGER$ April 2018
MAJOR CRACKS IN HY, EM & EVEN IG BODE POORLY FOR FUTURE DEBT FUNDED BUYBACKS DEBT FUNDED BUYBACKS The pillar that has been carrying equities for years (courtesy of cheap debt-funded buybacks) appears to be cracking as bond funds took a $1.9bn hit in the latest week. In fact, as BofA points out highlighting the […]
HYG, JNK, TNX, TRIGGER$ April 2018
MAJOR CRACKS IN HY, EM & EVEN IG BODE POORLY FOR FUTURE DEBT FUNDED BUYBACKS DEBT FUNDED BUYBACKS The pillar that has been carrying equities for years (courtesy of cheap debt-funded buybacks) appears to be cracking as bond funds took a $1.9bn hit in the latest week. In fact, as BofA points out highlighting the […]
A CAUTIONARY NOTE ON OVERVALUED AMAZON — SOURCE: 03-30-18 SeekingAlpha – David Butler – “A Cautionary Tale On Overvalued Stocks Part 1: Amazon” — Summary Amazon, while extremely successful, is vulnerable due to its reliance on tax avoidance and pricing leverage (sometimes involving losses) to steal market share from competitors. If a single piece of […]
TRUMP DEMANDS WASHINGTON POST OWNED BY AMAZON’S JEFF BEZOS REGISTER AS LOBBYIST Trump also referred to the Washington Post, which is owned by Amazon CEO Jeff Bezos, as a lobbyist organization. — SOURCE: 03-31-18 Huffington Post – “Trump Ramps Up Attack On Amazon, Demands Washington Post Register As Lobbyist” — Donald Trump tore into Amazon […]