Bond

Tyler Durden's picture

Quantitative Easing And The Corruption Of Corporate America





Since the turn of this century, debt-financed share buybacks have severely tested the character of those charged with growing publicly-traded U.S. firms. Should she ignore the potential for further QE-financed share buybacks to exact more untold economic damage, it would be akin to intentionally corrupting Corporate America. The time, though, has come for these wayward companies’ banker and enabler, the Fed, to hold the line, no matter how difficult the next inevitable test of their character may prove to be. It’s time for the Fed to defend the entire Union and end a civil war that pits a chosen few against the economic freedom of the many.

 
Tyler Durden's picture

Daiwa: "Round Two Of China Capital Outflows Is About To Begin"





Now that all eyes have turned on China eager to find how it will react to a potential Fed rate hike in June or July, the question is whether the sharp Chinese devaluation unveiled overnight, which sent the Yuan to fresh 5 year lows, will be a one-off event, and whether the PBOC will intervene far more aggressively in the offshore CNY market to keep FX market turmoil to a minimum. According to at least one person, the answer is no.

 
Tyler Durden's picture

Monetary Lunacy: The ECB Could End Up Funding Bayer's Purchase Of Monsanto





Today we find an even more striking example of just how broken the global bond market has become thanks to the ECB because as Reuters writes, Bayer could receive financing from none other than the European Central Bank to help fund its takeover of the world's largest seed company, US-based Monsanto, according to the terms of the ECB's bond-buying program.

 
GoldCore's picture

“Only Money Outside Of the Matrix" Will Survive ...





Morgan warns about the importance of owning physical gold coins and bars rather than paper or digital proxies for gold and silver bullion and money. 

 
Tyler Durden's picture

Global Stocks, Futures Rally, Ignore Sharp Yuan Devaluation On Hopes Fed Is Right This Time





The single biggest event overnight was the PBOC's devaluation of the Yuan to the lowest since March 2011, setting the fixing at 6.5693, the highest in over 5 years and in direct response to a stronger dollar, which however if one looks at the DXY remains well below the recent highs in the 100 range, suggesting for China this is only just beggining. However, the fact that there was not more volatility in onshore and offshore overnight FX also comforted the market that at the same time as its was devaluing the PBOC was also intervening in the FX market, thus providing some assurance it would not allow runaway "risk off" sentiment prevail, nor would it promote another blitz round of capital outflows, leading to another gradual levitation in overnight risk.

 
Sprott Money's picture

Precious Metals: Fake-Rally Ends, Hostage Markets Return





A Fed-head talks, and precious metals markets fall. Readers are invited to call this paradigm of fraud anything that they want. But the one thing they can't call this is “a rally”.

 
Tyler Durden's picture

Blistering Demand For 2 Year Paper Surprises Bond Watchers Ahead Of Alleged Rate Hike





The last time the US Treasury had a solid 2Y auction the paper was trading very special in repo, suggesting a major short squeeze was inevitable, and that is precisely what happened.  However, there was no explanation why today's just concluded sale of $26 billion in 2 year paper was as blisteringly hot as it was.

 
Phoenix Capital Research's picture

The Fuse is Lit on the Corporate Bond Market





And if you believe the defaults will be isolated to Energy companies, you’re mistaken. 

 
Tyler Durden's picture

Frontrunning: May 24





  • Asian stocks near 11-week lows, dollar bounces on Fed rate view (Reuters)
  • Poll Finds Lack of Enthusiasm for Clinton and Trump (WSJ)
  • Oil falls for fifth day as focus returns to growing exports (Reuters)
  • The Hedge Fund That Couldn't Stay Open Long Enough for a Big Payday (BBG)
  • French police break up refinery blockade in anti-reform showdown (Reuters)
 
Tyler Durden's picture

Stronger Dollar Sends Futures Higher, Oil Lower, Asian Stocks To Two Month Lows





Yesterday's weak dollar headfake has ended and overnight the USD rallied, while Asian stocks dropped to the lowest level in 7 weeks and crude oil fell as speculation returned that the Federal Reserve will raise interest rates as early as next month. The pound jumped and European stocks gained thanks to a weaker EUR.

 
Tyler Durden's picture

Kyle Bass Was Right: SocGen Does The Math On China's Staggering NPL Problem, Issues Dire Warning





"As SOE restructuring progresses, it will also become more apparent that Chinese banks need to be rescued. We estimate that the total losses in the banking sector could reach CNY8 trillion, equivalent to more than 60% of commercial banks’ capital, 50% of fiscal revenues and 12% of GDP."

 
Knave Dave's picture

Zombie Economy Soon to Have its Zombie Epocalypse





This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve tried to push back up to that distant high that means new life several times, but each time the market falls into a pit again to where the market is once again lower than it was a year ago. These are the last gasps of a stock market (and economy) that is struggling to rise again, which it simply cannot do now that QE has been turned off and the oxygen tank of zero interest is being slowly turned down.

 
Tyler Durden's picture

Why One Bank Is Urging Its Clients To Dump. Oil. Now





The US energy sector is now trading at a roughly 7x EBITDA multiple compared to a historical average between 1x and 2x. It only gets worse from there.

 
Tyler Durden's picture

'Father Of Modern Finance' Warns "Central Banking Is Like Pornography - Not The Real Thing"





"Everyday we read headlines on what the central banks are doing. But their policies don’t have any effect. They are just like treading water. All the central banks are doing is substituting one form of debt with another form of debt... I think it means the business of central banks is like pornography: It’s not the real thing."

 
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