Bond

Why Blackrock Isn't Worried At All About Record Low Volatility

"Low stock market vol only seems to keep getting lower. Yet we believe there are good reasons for vol to be subdued. Looking back, we find low-vol regimes, when U.S. equity volatility averages 10%, can last for years. That means realized U.S. equity vol has historically stayed low for remarkably long periods of time."

As D-Day Looms, The Maturity Of ECB's Bund Purchases Drops Again

In its latest monthly purchase, the ECB revealed that the estimated weighted average maturity of purchases of German bonds under the ECB’s PSPP in July declined once again to around 5.18 years vs 5.33 years in June, although it was modeslty higher compared to the record lows of 3.99 years in May and 4.7 years in April and March.

Frontrunning: August 7

  • Futures slightly higher after Dow's record run (Reuters)
  • Tillerson says U.S., Russia can settle differences (Reuters)
  • Hot-Stock Rally Tests the Patience of Value Investors (WSJ)
  • ‘Good Conservative’ Grassley Ramps Up His Panel’s Trump-Russia Probe (BBG)
  • Brands Strike Back: Seven Strategies to Loosen Amazon’s Grip (WSJ)

Tesla To Raise $1.5 Billion In Bond Offering

Just days after reporting its biggest quarterly cash burn in history, Tesla announced on Monday it plans to raise about $1.5 billion in new cash, although in a welcome change for equity investors, this time it decided against an equity or convertible sale, and will offer bonds instead to take advantage of the insatiable bond market, as the carmarker seeks to ramp up production of its latest Model 3 electric vehicle.

World Stocks Hit Another All-Time High As Crude, Treasurys Drop

World stocks hit a new record high on Monday, as U.S. index futures followed Asian stocks on better-than-expected company earnings and strong US jobs data deflected attention from the rising geopolitical tension over North Korea's nuclear program. European stocks traded near session lows while Crude oil prices fall. The Bloomberg Dollar Spot Index was little changed.

"Visions Of Cataclysms": Why Eric Peters Is Starting A Long-Vol Fund

"Rising volatility begets rising volatility. And given the unprecedented volatility-selling in this cycle, I can imagine a historic reversal. And at that point, investor imaginations will run rampant with visions of cataclysms. It is always thus, it is who we are. Confidence in a tomorrow that is indistinguishable from today will vanish, replaced by some new hysteria."

Nasdaq Crack: Sharp Slowdown In Tech Funds

One doesn't need to see the recent fund flows to know that the tech euphoria of the past seven months appears to be ending - one look at the recent underperformance of the Nasdaq is sufficient - but it helps.

WTF Chart Of The Day: Draghi's 'Markets' Have "Totally Gone Nuts"

If you want to earn a yield of about 2.4%, which instrument would you rather have in your portfolio, given that both produce about the same yield, and given that one has a significant chance of defaulting and getting you stuck with a big loss, while the other is considered the safest most boring financial investment out there?