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 $1.9bn hit in the latest week. In fact, as BofA points out highlighting the […]
A CAUTIONARY NOTE ON OVERVALUED AMAZON — SOURCE: 03-30-18 SeekingAlpha – David Butler – “A Cautionary Tale On Overvalued Stocks Part 1: Amazon” — Summary Amazon, while extremely successful, is vulnerable due to its reliance on tax avoidance and pricing leverage (sometimes involving losses) to steal market share from competitors. If a single piece of […]
TRUMP DEMANDS WASHINGTON POST OWNED BY AMAZON’S JEFF BEZOS REGISTER AS LOBBYIST Trump also referred to the Washington Post, which is owned by Amazon CEO Jeff Bezos, as a lobbyist organization. — SOURCE: 03-31-18 Huffington Post – “Trump Ramps Up Attack On Amazon, Demands Washington Post Register As Lobbyist” — Donald Trump tore into Amazon […]
TRUMP ATTACKS AMAZON – SHIFTS TO “POSTAL SCAM” FROM “FAILURE TO COLLECT SALES TAX” — SOURCE: 03-31-18 Bloomberg – “Trump renews attack on Amazon, calling its shipping deal with Postal Service a ‘scam’ that must end” — Employees organize outbound packages at Amazon’s San Bernardino fulfillment center in 2013. (Ross D. Franklin / Associated Press) […]
CREDIT PROBLEMS IN THE UNSECURED US$ FUNDING MARKET — SOURCE: 03-29-18 ZeroHedge – “Libor Just Did Something It Hasn’t Done In 13 Years” — With traders looking in awe at the ongoing flattening in the yield curve, as the 2s10s drops below 50bps… … with the 10Y sliding to a 7 week low under 2.74% […]
CREDIT PROBLEMS IN THE UNSECURED US$ FUNDING MARKET — SOURCE: 03-29-18 ZeroHedge – “Libor Just Did Something It Hasn’t Done In 13 Years” — With traders looking in awe at the ongoing flattening in the yield curve, as the 2s10s drops below 50bps… … with the 10Y sliding to a 7 week low under 2.74% […]
MATASII 10Y UST – TNX CALL – CHART UPDATE MARCH 11th REVERSAL CALL w/ ~2.60% Near Term Target UPDATE 03-30-18 – ~2.60% Near Term Support Progressing as Anticipated YIELD SYNTHESIS: Yield Curve Flattening and showing potential to Invert, US Economic Hard & Soft Data Surprises Negative, Reduced Probability by Analysts of a Fourth FOMC Rate Hike […]