Bond

European Central Banks Disclose Which Corporate Bonds They Own

Earlier today, alongside the ECB's latest weekly disclosure of total corporate bond purchases under the CSPP program, which as of July 15 had risen by approximately €2 billion to €10.427 billion, suggesting a daily purchase pace of about €400 million, Europe's various regional central banks also disclosed for the first time the CUSIP list of which specific bonds they had purchased over the past month and a half.

With The S&P 140 Points From Its 2018 Year End Target, Goldman Is Confused

Goldman found itself in the confusing position of being far more bearish than its clients, predicting that the S&P will rise less than 150 points over the next two and a half years and has to explain the reasons behind its bearishness, as well as the reason why it expects a sharp 5-10% drawdown in the S&P in the coming months.

US Futures Rebound Sharply From Friday's Coup Fears, Focus Shifts To M&A

Having panciked briefly on Friday night on news of a Turkish coup, which has since not only failed but been cast away as speculation rises that it was staged and designed to give Erdogan even more authoritarian power, markets have moved on and are now focusing on the main overnight event which was the surprising $32 billion bid by Japan's SoftBank for U.K.’s semiconductor giant ARM which has sent comparable semis higher in European trading and pushing the Stoxx Europe 600 Index up by 0.6%, after surging 3.2% last week. After sliding sharply on Friday, US equity futures are up 0.1% in early trading.

Grant Williams: The Rising Danger Of A Bidless Market

"Through life, behavior is reinforced by consequences. And since 2008, everything possible has been done to avoid the consequences... and now we've got a bunch of people now who are essentially paid to believe central banks...we will see all the unintended consequences of these actions come out when people want to hit a bid and there's not a bid there. It could get ugly."

Morgan Stanley: "To Make Up For A 10% Drop In The S&P, Treasury Yields Would Need To Go… Negative"

Take a 60/40 portfolio constructed today from the S&P 500 and US Treasuries. To make up for a 10% decline in the equity market, Treasury yields would need to go… negative. Not impossible, but certainly a high hurdle! We think investors in European and Japanese bonds are seeing a clear example of this dilemma, with Bunds and JGBs simply unable to rally enough to offset recent equity market declines.

With "Stock Valuations At Extremes" Goldman's Clients Are Asking Just One Question

This week the S&P 500 surged to a new record high of 2164 this week while the 10-year US Treasury yield touched an all-time low of 1.37%. As a result Goldman, and especially its clients, are stumped. As chief equity strategist David Kostin admits, they have one burning question. As Kostin puts it, they "are struggling to reconcile how extreme valuations of both assets can co-exist."

Weekend Reading: If I Was Janet Yellen

Unfortunately, for Janet, this is the 'trap'. The liquidity will dry up, the inventory restocking cycle will end, and the next “crisis” will be on the horizon with Ms. Yellen remaining stuck near the “zero bound.”  The past opportunities to “normalize” interest rate policy have come and gone. This opportunity will likely pass also and, as always, the Fed will realize far too late they are trapped. But by then, it won’t matter much to investors, or what’s left of them, anyway.

These Are The 10 Corporate Bond With The Most Negative Yields In The World

We may soon see the unprecedented paradox where a German, French or Dutch corporate is trading with a negative yield, even as the matched-maturity sovereign bond is trading with a less negative yield, or is outright positive now that the ECB has shown it is more willing to accept negative corporate bond yields than bund yields.

The Real Endgame For Italian Banks

The new head of UniCredit, Italy’s biggest bank, has implored the EU to take a more lenient stance on rescuing the country’s troubled banking sector, as The FT reports Mustier urges Brussels should look to a controversial 2004 French government rescue of Alstom as a model. The 13% surge in Italian bank stocks this week - the most since 2011 - offers a further hint that, as Bloomberg's Mark Cudmore explains, there’s only one viable outcome to the fiasco with Italian banks, and it will ultimately be a positive catalyst for global risk assets even if negative for the euro.

World's Top Investors "Ring Alarm" At All Time Market Highs

The big rally in stocks and bonds has some of the world’s top money managers putting up warning signs. Laurence Fink and Howard Marks joined the likes of Bill Gross and Jeffrey Gundlach cautioning that buyers may be getting ahead of themselves... by about 25%.

Global Corporate Defaults Just Hit 100, On Pace To Surpass Financial Crisis Record

With half of 2016 in the history books, corporate bond defaults just hit the milestone "century" mark, or 100, last week, rising by 50% from the number of bankruptcies at this time last year and the highest level since the US emerged from recession in 2009. What is most troubling is that at the current run-rate, with half of 2016 still to come, the global debt default total is on pace to surpass 2009 for the all time corporate bankruptcy record.

Global Stock Rally Halted In Aftermath Of Latest French Terror Attack

The tremendous rally of the past 4 days that has sent global stocks soaring in recent days has finally been capped and European shares, S&P futures are all modestly lower following a deadly terror attack in Nice, France. Meanwhile Asian stocks rose as Chinese economic data beat estimates, with Q2 GDP rising by 0.1% more than the estimated 6.6% on the back of stronger housing data.