• EconMatters
    04/27/2015 - 14:18
    If the DOJ and CFTC is going to be consistent, then they have to indict the entire financial community from the CME, Exchanges, Brokers, Institutions, Investment Banks, Hedge Funds, Management Funds...

Bond

Tyler Durden's picture

Why A Chinese Developer's Default Means Trouble For New York Real Estate





Following the default on major Chinese developer Kaisa this week, and with the continued softness in the Chinese property market, many are asking who's next among the highly-leveraged firms. However, as The Real Deal's Konrad Putzier notes, Kaisa’s default carries significance for New York’s real estate industry. Chinese investors spent $3 billion on New York properties in 2014. Many in New York continue to associate Chinese real estate companies with limitless funds and a never-ending ability to invest... But what if they are wrong?

 
Phoenix Capital Research's picture

The Next Round of the Great Crisis is at Our Doorstep





Central Bankers bet the financial system that their academic theories would work, despite the countless real-world examples showing that printing money does not generate growth.

 
Secular Investor's picture

Negative Interest Rates: The Black Hole of The Financial System





It feels like not a single soul is worried about the increasing amount of negative interest rates around the world. Ignorance or indifference?

 
Tyler Durden's picture

How The Fed Creates Zombies In One Simple Flow Chart





“Sometimes the side effects outweigh the benefits"...

 
Tyler Durden's picture

Volatility Is The Square Root Of Time & Fat Tails





The trio of macro-prudential policy, the onset and evolution of shadow banking, and the nebulous concept of financial stability may have become a toxic cocktail which can be instrumental in moving forward the Federal Reserve’s timeline for lift-off zero bound rates.  The intuition here is stooped in concepts of volatility and how market structure evolution may contribute or detract from asset volatility. Volatility is the square root of time. Financial repression times time equals volatility. Financial repression and/or macro-prudential policy times time equals the inverse of financial stability. Financial stability inverted equals volatility squared.

 
Tyler Durden's picture

When To Put On Bill Gross' Big Bund Short: Citi Explains





With only six weeks (or one Graccident) to go until Bund purchases are forced out to 7-year maturities, and with traders warning that nearly every piece of PSPP-eligible German government paper will eventually trade special in repo despite the ECB’s feeble attempt to remedy the situation via its Securities Lending Program, the world wants to know: “when do I sell Bunds?”

 
Tyler Durden's picture

Puerto Rico Warns Of Imminent Government Shutdown Due To "Liquidity Crisis"





"A government shutdown is very probable in the next three months due to the absence of liquidity to operate," Puerto Rico's finance officials warn, in an effort to shock lawmakers into action and avoid a potential "PRimbo".

 
Tyler Durden's picture

Of Bonds & Bankers: Impossible Things Are Commonplace





There was once a time, perhaps, when unprecedented things happened only occasionally. In today’s financial markets, unprecedented things are commonplace. The Queen in Lewis Carroll’s ‘[Alice] Through the Looking-Glass’ would sometimes believe as many as six impossible things before breakfast. She is probably working in the bond markets now, where believing anything less than twelve impossible things before breakfast is for wimps.

 
Tyler Durden's picture

Futures Fizzle After Greece "Hammered" In Riga, Varoufakis Accused Of Being "A Time-Waster, Gambler, Amateur"





Even though no rational person expected that the Greek situation would be resolved at today's talks in Riga, Latvia, apparently the algos were so caught up in spoofing each other to new record highs that futures, after surging once more overnight following the latest Google miss which sent the company and the Nasdaq soaring, actually dipped modestly into the red following headlines that the latest Greek talks have broken down after a "hostile" Troika "hammered" the Greek finmin, who was accused by European finmins of "being a time-waster, a gambler and an amateur."

 
testosteronepit's picture

This Is How Junk-Bond Investors Are Now Getting Whacked





They’ve become sitting ducks, in a market that is "in extreme overvaluation."

 
Tyler Durden's picture

Assessing The Risk Of A Greek Default





Tomorrow, Friday, April 24th, the finance ministers of Europe will again meet to discuss the fate of Greece’s bailout program. Although no definitive course of action is expected to come out of this meeting, it is yet another chance to assess the potential consequences if indeed the Greek government defaults on its loans.

 
Tyler Durden's picture

"Obsessive" Buybacks Could Be Big Mistake, "Serious" People Tell Unserious People





"Companies that obsessively buy back their shares could be making a big mistake," Moody's head of head of leveraged finance tells CNBC, echoing what we have said on too many occasions to count. With IG supply at all-time highs and with companies pouring the money into share repurchases instead of investing in future productivity and growth, we say yet again that the theatre of financial engineering will continue only until it can no longer continue.

 
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