VIX Spikes To 11 As Equity Market Liquidity Dries Up

The plunge in US equity markets continues - led by big tech names - sending VIX soaring to 11 for the first time in 3 weeks. As stocks slip, and VIX spikes, liquidity is also disappearing from futures markets, setting ETFs up for a potentail flash-crash...

Paulson Shutters Long-Short Equity Fund Amid Massive Healthcare Losses

It seems that John Paulson is finally willing to admit what the market has been telling him for quite some time now, namely that he just might have been exactly wrong on his massive healthcare bet.  As Bloomberg points out today, this inevitable capitulation from Paulson has resulted in a "re-focusing" of his firm and the shuttering his first ever separately managed fund run by Guy Levy.

Mediocre, Tailing 7 Year Auction Following Yesterday's Short Squeeze

While the auction was not nearly as exciting as the last two, perhaps much of that has to do with the post-Fed rally observed yesterday, which forced short covering, mostly on the short end, but also broadly across the curve. And with less shorts to squeeze, the result was a rather mediocre auction.

$350 Trillion In Securities In Limbo: LIBOR To Be Phased Out By 2021

Unofficially, Libor died some time in 2012 when what until then was a giant conspiracy theory, namely that the world's most important reference index had been rigged for years, was confirmed. Officially, Libor died earlier today when the top U.K. regulator, the FCA announced that Libor would be phased out by the end of 2021.

Core Durable Goods Orders Disappoint But Aircraft Orders Surge 131%

A huge upside surprise for durable goods orders (+6.5% MoM vs +3.9% MoM) was dominated by a 19% spike in transportation (with non-defense aircraft orders up 131.2% MoM). However, away from this unsustainable surge in orders, Core Durable Goods Orders disappointed (+0.2% vs +0.4% exp) and Capital Goods New Orders Nondefense Ex Aircraft & Parts fell 0.1% - the biggest drop since Dec 2016.

Krona Sinks After Swedish PM Refuses To Resign, Reshuffles Cabinet Over "Disastrous Leak"

A brief (ECB/Fed-driven) sigh of relief yesterday in the Krona has ended as Sweden's embattled PM has refused to resign over the government's "disastrous leak" of the nation's citizens' information. Lofven has instead chosen to reshuffle his cabinet, ading "I don’t want political chaos in Sweden, that’s not what we need right now, I will take responsibility and ensure we don’t get a political crisis."

Frontrunning: July 27

  • Healthcare showdown (Reuters)
  • Tax Overhaul in Doubt With House Stuck on Budget Disagreements (BBG)
  • Dollar steadies after Fed skid, shares hit new highs (Reuters)
  • Samsung Is Closing In on Apple as World’s Most Profitable Tech Firm (WSJ)
  • Sweden's PM Refuses to Resign After Cyber-Security Scandal (BBG)