Here's The Real Reason High Yield Energy Credit Risk Collapsed This Morning
Submitted by Tyler Durden on 01/12/2016 - 13:33
A few market participants have noticed that the US High Yield Energy sector's credit risk collapsed 170bps this morning according to Bloomberg's data. This is the biggest plunge (rally) in the index of "incredibly risky stuff" on record and in the face of new cycle lows in crude, borrowing bases contracting, and rig counts crashing, this seemed odd... well here is why the index collapsed (spoiler alert - do not get excited).
Sharp Squeeze, Highest Foreign Central Bank Demand Since 2009 Lead To Scorching 3 Year Auction
Submitted by Tyler Durden on 01/12/2016 - 13:13
Moments ago with the When Issued for today's $24 billion in 3 Year paper trading at 1.188%, we were confident that as a result of the substantial short overhang, the auction would price well through the WI. It did so, and by a mile: the final high yield print was a whipping 1.174%, stopping some 1.4 bps through the When Issued.
The Real Value Of A Powerball Ticket
Submitted by Tyler Durden on 01/12/2016 - 13:02
After accounting for taxes and the possibility of a shared prize, a ticket’s monetary value is actually substantially lower than some believe (around $.75), making it a poor investment. So why do people buy them? Are consumers hapless rubes throwing away their hard-earned money in exchange for nothing? Not necessarily.
The Arrests Begin: Sweden Police Scramble To Respond To Refugee Sex Assault Coverup
Submitted by Tyler Durden on 01/12/2016 - 12:21
In the wake of a series of articles published over the weekend which suggested that both the police and the media in Sweden engaged in a coverup to conceal a series of sexual assaults from the public, authorities are in damage control mode. As the arrests begin, it seems likely that the far-right will capitalize on the scandal by blaming the mainstream parties for failing to protect the country's youth.
Are We Entering an Earnings/Sales Recession?
Submitted by Tyler Durden on 01/12/2016 - 12:02
Is the U.S. economy in recession? Is it heading for recession? These questions can only be answered in hindsight, but it's worth looking for clues to what might be just ahead.
Loonie Lurches To 13 Year Lows As Crude Nears '2' Handle
Submitted by Tyler Durden on 01/12/2016 - 11:58
Today's renewed plunge in WTI Crude (on the verge of a '2' handle any second) has extended the Canadian Dollar's weakness (among many other oil producers). For the first time since early 2003, the Loonie is worth less than 70c... (anyone for skiing?)
Fed "Policy Error" Panic Continues
Submitted by Tyler Durden on 01/12/2016 - 11:52
With rate-hike odds plunging for every meeting across 2016, and bond yields collapsing almost as fast as stocks, it appears the market's faith in the The Fed is faltering fast...
Dow Gives Up "China Is Fixed" Gains As WTI Crashes To New Cycle Lows
Submitted by Tyler Durden on 01/12/2016 - 11:28
Well that escalated quickli-er...
That "Savage" Deleveraging: Global Debt 2000-2015
Submitted by Tyler Durden on 01/12/2016 - 11:23
That savage deleveraging - it has been truly... epically... unnoticeable...
The Chinese Central Bank Just Pulled A Martin Shkreli
Submitted by Tyler Durden on 01/12/2016 - 10:58
Recall how the worthless KaloBios stock soared from almost nothing first to $10, then to $20 before finally peaking in the mid-$40s: the reason for that is that Martin Shrekli, since arrested, proceeded to buy ever more of the KBIO float, making shorting first prohibitively expensive, and ultimately, impossible when he owned virtually all of the float. The PBOC did just that overnight...
WTI Crude Plunges Back To $30 Handle - Drags US Stocks Lower
Submitted by Tyler Durden on 01/12/2016 - 10:51
Crude carnage continues and despite the best efforts of the USDJPY pumpers, US equity markets are tumbling along with oil (and copper)...
Bank Of America Is "Confused" Why Retail Spending Refuses To Pick Up
Submitted by Tyler Durden on 01/12/2016 - 10:28
This is the title of its latest piece looking at retail spending paterns based on its credit and debit card data: "Confusingly cautious consumer." Here is why BofA so confused by the cautious consumers.
Crude Curve Collapses - Market Sees Sub-$50 Oil Through 2021
Submitted by Tyler Durden on 01/12/2016 - 10:20
The crude curve has just collapsed, especially since the rebound after China’s Golden Week reprieve ended around October 15. As Alhambra's Jeff Snider notes, the entire futures curve is under $50, an upsetting commentary on everything from US "demand" to long-term implications and especially those that are derived from economists’ somehow continued insistence that this is all just "transitory."
What’s Next For Stocks After Record New Year Week 1 Hangover?
Submitted by Tyler Durden on 01/12/2016 - 09:59
U.S. stocks logged the worst week ever to kick off a new year; is this historically low reading on the “January Barometer” a bad omen going forward?
Dramatic Clip Captures Raid On World's Most Notorious Drug Lord
Submitted by Tyler Durden on 01/12/2016 - 09:42
